Uniti Group Inc. completed a $25 million first tranche of its sale-leaseback and fiber acquisition from U.S. TelePacific Holdings Corp., and purchased 30 long-haul intercity dark fiber routes from CenturyLink Inc.
The communications infrastructure real estate investment trust said in an earnings release that the first tranche comprised the acquisition of 6,000 fiber strand miles in Nevada, Texas and Massachusetts that will be leased back to U.S. TelePacific on a triple-net basis. Uniti Group also acquired 7,000 fiber strand miles in Texas that will be used exclusively by the company. The company expects to wrap up the second tranche, comprising the acquisition of the California assets, in the third quarter.
Uniti Group noted that the dark fiber routes total 11,000 route miles and 270,000 fiber strand miles across 25 states. The U.S. Justice Department approved the transaction as a condition of CenturyLink's merger with Level 3 Communications Inc. Uniti Group said it executed an anchor tenant lease with a Fortune 100 company for 11% of the fiber strand miles.