Independent Proxy Firm Recommends Windstream REIT Spin-off
by February 4, 2015 3:17 pm 154 views
Windstream received a vote of confidence for its real estate trust spin-off from one of the leading independent institutional shareholder advisors, ISS.
ISS, Institutional Shareholder Services, recommended that Windstream stockholders vote “for” two proposals related to its previously announced REIT spinoff. Windstream will hold a special meeting of stockholders on Feb. 20, 2015 to consider the company separation.
In its report, ISS recommends voting “for” a 1-for-6 reverse stock split and an amendment to a Windstream subsidiary’s charter to allow conversion of the subsidiary to a limited liability company (LLC).
ISS subscribers are largely institutional investment groups who rely on the independent analysis of ISS for corporate governance decisions.
“We are pleased that ISS recommended voting in favor of these proposals, which we believe will take us one step closer to completing the REIT spinoff,” said Windstream President and CEO Tony Thomas. “We are confident this transaction will make Windstream a stronger, more competitive company while also positioning the REIT for future growth.”
Windstream announced on July 29 that it would form an independent, publicly traded REIT that will own Windstream’s existing fiber and copper network and other fixed assets. In turn, Windstream will lease the network and those assets from the new company for $650 million annually.
The move is expected to reduce Windstream’s debt, increase its cash flow, and potentially position the company for acquisitions. Windstream said it anticipates that the spinoff would occur in the first quarter of 2015.