LITTLE ROCK, ARK. – Communications Sales & Leasing, Inc. (“CS&L” or the “Company”) (Nasdaq:CSAL) announced today that Windstream Holdings, Inc. (“Windstream”) disposed of 14,703,993 shares of common stock, par value $0.0001, (the “Shares”) of the Company to certain creditors of Windstream in exchange for the satisfaction of certain Windstream debt. Citigroup Global Markets Inc. then acquired such Shares from the creditors and as selling shareholder, sold the Shares to institutional accredited investors, including funds managed by Searchlight Capital Partners, L.P. (“Searchlight”). The Company did not receive any proceeds from the disposition of Shares.
In connection with the transaction, Searchlight, as lead private investor of 10,000,000 Shares, was offered by CS&L the right to designate one member to CS&L’s board of directors, provided that such designee is reasonably acceptable to CS&L. This designation right will terminate if Searchlight’s ownership drops below 5% prior to June 15, 2019 and or below 8% thereafter.
Kenny Gunderman, President and Chief Executive Officer of CS&L commented, “Searchlight is a global private investment firm with deep expertise in the communications industry. We very much welcome Searchlight as a substantial shareholder, and look forward to the valuable insights and contributions their designee will bring to our board of directors.”
The Shares have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from registration requirements or a transaction not subject to the registration requirements of the Securities Act or any state securities laws. In connection with the transaction, CS&L has agreed to provide certain registration rights to purchasers of the Shares.
CS&L (Nasdaq:CSAL), an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure, and is a leading provider of wireless infrastructure solutions for the communications industry. CS&L currently owns 3.9 million fiber strand miles, 85 wireless towers, and other communications real estate throughout the United States and Mexico. Additional information about CS&L can be found on its website at www.cslreit.com.