Uniti Group Inc.

The industry-standard benchmark/Markit RED bond that has been used for years as the “Reference Obligation” for this reference entity (7.125% bonds due 2024, issuer was Uniti Group LP, ISIN US20341WAE57) was a Non-Conforming Reference Obligation—the guarantee provided by the reference entity was not a “Qualifying Affiliate Guarantee” because it was revocable. On 12/15/21, this obligation was redeemed in whole thereby constituting a Substitution Event under section 2.11(a)(i) of the 2014 definitions.

We request that the Determinations Committee determine, with respect to trades on Uniti Group Inc. as reference entity referencing the 7.125% bonds due 2024 (US20341WAE57) that the 6% bonds due 2030, issued by Uniti Group LP (91327AAB) are now the “Substitute Reference Obligation.” We note that, since the original Reference Obligation was a Non-Conforming Reference Obligation as of the Substitution Event Date, then pursuant to the first step of the substitution waterfall for Non-Conforming Reference Obligations in section 2.10(c)(iii)(B)(I) of the 2014 definitions, the Substitute Reference Obligation should be a Non-Conforming Substitute Reference Obligation. The 6% bonds due 2030 (91327AAB) are a Non-Conforming Substitute Reference Obligation under Section 2.15 since they are an obligation that is non-conforming for the same reason as was the Reference Obligation immediately prior to the Substitution Event Date (i.e., having a similar revocable guarantee from Uniti Group Inc).

Also note that the reference-entity is a long-term constituent/component of various series of CDX HY Index. This determination is important to align contracts traded for many years with respect to this reference entity and also to provide Markit with guidance regarding an appropriate benchmark RED bond for future contracts.

Link to old/redeemed ref ob
Link to guarantee of old ref ob
Redemption notice for old ref ob (Description in first 2 paragraphs of Section 1.01)
Link to proposed substitute ref ob (Article 10 has the guarantee and 10.06 has the release/revocation provisions)