Uniti Group Inc. 8-K

What Happened

• Uniti Group Inc. filed an 8-K (Item 1.01) reporting that on January 30, 2026 its indirect, bankruptcy-remote subsidiary Kinetic ABS Issuer LLC issued $960,100,000 aggregate principal of secured fiber network revenue term notes (Series 2026-1). The Term Notes were issued at par and consist of: $677,710,000 5.219% Class A-2, $112,960,000 5.561% Class B, and $169,430,000 7.653% Class C. Interest payments are monthly on the 25th beginning March 25, 2026; the anticipated repayment date (ARD) for the Term Notes is February 2031.

Key Details

• Inaugural fiber-to-the-home securitization covering fiber assets and residential customer contracts in TX, AR, KY, OH and GA sold to the securitization entities at closing.
• Also provides for up to $150,000,000 of Class A-1-V variable funding notes (VFN) (initial VFN ARD Feb 2029, with up to two one-year extensions) and up to $14,017,876 of Class A-1-L liquidity funding notes to support the program’s liquidity reserve.
• Collateral and guarantees: the Series 2026-1 Notes are obligations of the Issuer and related Kinetic ABS entities, guaranteed by each Asset Entity and the Issuer’s direct parent (the Holdco Guarantor), and secured by equity interests and substantially all assets of the Obligors (primarily the specified fiber assets and related revenues). Uniti and its other subsidiaries (outside the Obligors and Holdco Guarantor) will not guarantee these notes.
• Legal final maturity is February 2056; if not repaid or refinanced by ARD, additional higher post-ARD interest provisions apply (including a floor linked to 5% plus spreads). VFNs bear interest generally at base rate or SOFR + 1.75% (or CP funding cost +1.75% for conduit-funded draws).

Why It Matters

• This transaction raises $960.1M of cash proceeds that Uniti intends to use for general corporate purposes, which may include growth-related capital spending and/or repayment of outstanding debt. It is the company’s first securitization of fiber network revenue and separates those assets and cash flows into bankruptcy-remote entities.
• For investors, the structure limits recourse for these notes primarily to the securitized assets and the Obligors (not to Uniti’s broader parent or operating subsidiaries), and introduces scheduled payment and liquidity covenants (including rapid amortization triggers) that could affect cash flows to the securitization if coverage tests are not met.