So looks like shareholders are getting wiped out?
Under the Backstop Commitment Agreement, I understand that, in exchange for
their agreement to backstop the Rights Offering, the Equity Backstop Parties will receive (a) the
right to participate in an offer (the “Rights Offering”) to purchase $750 million (or approximately
96%, subject to dilution by the management incentive plan) of new common stock of reorganized
Windstream (the “New Common Stock”) at a 37.5% discount to the stipulated Plan Equity Value
of $1.25 billion, (b) an 8% Equity Backstop Premium equal to $60 million payable in additional
shares of common stock, also at a 37.5% discount to Plan Equity Value, and (c) payment of the
Backstop Parties’ professional fees and expenses.
