Uniti Group Soars 10.6% on $960 Million Fiber Network Securitization Deal
Uniti Group Inc. (NASDAQ: UNIT) capped a strong week with a significant rally Friday, its stock climbing 10.6% to close at $8.32. The jump follows the company's announcement of a successful $960 million fundraising effort, capitalizing on robust demand for asset-backed securities in the telecom sector.
The capital was raised through the issuance of secured notes, backed by a portfolio of residential fiber network assets and related customer agreements across five states: Arkansas, Georgia, Kentucky, Ohio, and Texas. The transaction, executed by Uniti's subsidiary Kinetic ABS Issuer LLC, represents the company's first securitization specifically tied to its fiber-to-the-home (FTTH) business.
"The overwhelming demand for this inaugural FTTH securitization underscores the strength and predictable cash flows of our fiber assets," said Uniti CFO Paul Bullington. "This efficient capital provides us with substantial liquidity to accelerate our network buildouts and fortify our balance sheet."
Proceeds are earmarked for general corporate purposes, including capital expenditures and debt repayment. In a complementary move, Kinetic also secured a $150 million variable funding facility to serve as a liquidity reserve.
The deal arrives as telecom operators and infrastructure companies race to expand high-speed broadband networks, fueled by sustained government funding and remote work trends. Uniti's ability to securitize future revenue from these assets offers a potentially lower-cost financing model for its growth.
The company is scheduled to report its Q4 and full-year 2025 earnings before market open on March 2, 2026.
Market Voices
Michael R., Portfolio Manager (Boston): "This is a textbook case of smart capital recycling. Uniti is monetizing mature, revenue-generating assets to fund new, higher-growth builds. It improves their cost of capital and demonstrates the tangible value of their fiber footprint to the market."
Lisa Chen, Telecom Analyst at Horizon Research: "While the securitization is a positive liquidity event, the long-term thesis still hinges on execution and competitive dynamics. The capital must be deployed efficiently into builds that meet ROI hurdles. The upcoming earnings will be crucial for gauging operational progress."
Dave "StockWolf" K., Independent Trader (Online Commentary): "Finally! The market wakes up to the hidden value here. This isn't just about raising cash; it's a validation of the entire fiber business model. Shorts got squeezed hard today. This could be the start of a major re-rating if management executes."
Sarah P., Risk Assessment Officer: "Let's temper the enthusiasm. Loading up the balance sheet with more secured debt against specific assets increases structural complexity and could limit flexibility. What happens if subscriber growth in those securitized regions slows? The 'attractive cost' of capital today might carry hidden risks tomorrow."