Windstream Holdings’ board of directors on Thursday gave final approval to a plan to spin off its telecom network into a new firm.
The spinoff of assets into Communication Sales & Leasing will allow Windstream to trim $4 billion in debt and increase its investment in its remaining network.
CS&L will be an independent, publicly traded real estate investment trust.
Windstream shareholders will get one share of CS&L stock for every five Windstream shares they own. The distribution is expected to happen on April 24.
That process will give Windstream shareholders 80.1 percent of CS&L stock. Windstream will retain the rest of the shares, selling them over the next year to raise money for cutting its debt.
Also on April 24, Windstream expects to pay a dividend of 6.59 cents per share.
Then, Windstream will reduce its number of outstanding shares by declaring a 1-for-6 reverse stock split.
Windstream expects to pay an annual dividend of 60 cents per share after giving effect to the stock split, compared to $1 per share annually before the CS&L spinoff.
CS&L expects to pay an annual dividend of $2.40 a share.
Windstream, based in Little Rock, Arkansas, came to Lancaster County by acquiring Ephrata-based D&E Communications in 2009.
