Uniti buys TPx fibre ops for USD 95 mln in cash

Monday 5 March 2018 | 09:41 CET | News
Uniti Group, formerly Communications Sales & Leasing (CS&L) said it has agreed to buy the fibre operation of US TelePacific (TPx) for USD 95 million in cash. Under the agreement, Uniti will acquire and the lease back to TPx, on a triple-net basis, 38,000 fibre strand miles located across California, Nevada, Texas, and Massachusetts. Uniti will also acquire and have exclusive use of 7,000 fibre strand miles located in Texas, adjacent to Uniti Fiber’s southern network footprint. Finally, Uniti will have non-exclusive rights to market, on behalf of TPx, certain of the fibre assets in California and Massachusetts. 

The deals are subject to the usual closing conditions and are expected to close in two tranches, with the non-California assets expected to complete in the second quarter and the remaining California assets to close in the third quarter. The initial lease term will be 15 years with five 5-year renewal options, at TPx’s discretion. Uniti said it will fund the deals via its revolving credit facility.

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