Windstream to spin off network assets

HIAWATHA - Windstream Holdings, with operations in Hiawatha, is planning to spin off some of its telecommunications network assets into a publicly traded real estate investment trust.

The Little Rock, Ark., company expects to distribute about 80 percent of the shares of Communications Sales & Leasing on April 24 to Windstream shareholders of record at the close of business on April 10. Windstream also will make a cash distribution equivalent to a prorated 25 cent quarterly dividend to Windstream shareholders.

Assuming the spinoff closes on April 24, the cash dividend would be 65.9 cents per share, and Windstream would make the payment on April 24.

Tony Thomas, president and chief executive officer of Windstream, said in a news release that Communications Sales & Leasing will provide an attractive yield to shareholders with the ability to grow and diversify.

'Windstream will be a stronger company with less debt and increased capacity to invest in our network to provide advanced communication services to customers,” Thomas said.

Windstream will lease the network assets from Communications Sales & Leasing. It also will operate and maintain the assets to deliver advanced communications and technology services to consumers and businesses.

After the spinoff, Windstream will continue to be listed on Nasdaq under the symbol 'WIN,” while CS & L expects to list its common stock on Nasdaq under the symbol 'CSAL.”

In August 2011, Windstream established operations in the Corridor with the $2.5 million acquisition of PAETEC operations that had been formerly owned by McLeodUSA. Windstream had previously purchased Iowa Telecom of Newton in 2009 for $1.1 billion in stock and cash.