Windstream (Nasdaq: WIN) is considering forming a new publicly traded holding parent company for Windstream and its various subsidiaries. Under the proposed structure, the existing Windstream Corp. would become a direct wholly-owned subsidiary of the public trading company which would be the holding company.
The telco said during its Q2 earnings call that the "modified ownership design would enhance Windstream's corporate structure, strengthen its credit profile and provide greater financial flexibility."
When the new holding company is formed, the telco's current dividend practice is expected to remain the same.
At this point, it appears that Windstream is exploring its options. It plans to make a final decision on how the holding company would be structure after it completes its analysis and gets necessary approvals.
"The reason why we are evaluating Holdco, Windstream has been very acquisitive in the past and right now we kind of have a clear day, we are really focused on integrating PAETEC and given the relatively good performance in the credit markets coupled with limited regulatory activity we thought now it would be a good time to go out there and pursue Holdco," said Tony Thomas, CFO of Windstream during the earnings call.
- see the earnings release
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