On March 4, 2019, Uniti Group Inc. (the “Company”) commenced a process to seek an amendment and limited waiver (the “Amendment”) under the Company’s credit agreement. The Amendment would, among other things, waive any default resulting from a going concern modification to the audit opinion the Company expects to receive from PricewaterhouseCoopers LLP as a result of the recent bankruptcy filing by Windstream Holdings, Inc. and all its subsidiaries. In connection with the Amendment, the Company may agree to certain restrictions under its credit agreement during the pendency of the Windstream bankruptcy, including a provision generally limiting our ability to pay future cash dividends to an amount that does not to exceed 90% of our taxable income (excluding capital gains).
For the 2018 tax year, the Company paid dividends attributable to its capital stock of approximately $435 million, and in January 2019 the Company paid a dividend attributable to its capital stock of approximately $110 million related to the 2019 tax year. Under the Amendment, the Company expects dividends attributable to its capital stock paid applicable to the 2019 tax year to be limited to approximately $250 million, and aggregate dividends paid during the upcoming four quarters to be limited to approximately $140 million.
