Infrastructure Vendors Beware: Networks & U.S. Telecom REITs

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3Q 2014 | IN-1019816

IRS: Fiber and Copper Now Count as Real Estate


On July 29, Bloomberg reported that the IRS Private Letter Ruling (PLR) grants Windstream the right to place their fiber and copper network assets into a Real Estate Investment Trust (REIT). As structured, the deal provides immediate cash flow and tax advantages to Windstream. Bloomberg reports that this will reduce Windstream’s debt by US$3.2 billion and increase free cash flow by US$115 million per year. Wall Street immediately boosted Windstream stock by 25% and nudged up AT&T, Verizon, and other telecoms by significant percentages. The Windstream Market Cap is currently US$6.91 billion.

Will Telecoms Follow Suit?


The benefit for Winds...

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