Event Publicly Available Information:
Additional Information: On April 24, 2015 Windstream Services LLC (formerly known as Windstream Corporation and a subsidiary of Winstream Holdings, Inc. (“Windstream Holdings”)) (“Windstream Services”) completed a spin-off of Communications Sales & Leasing, Inc., (“CS&L”). In connection with, and as consideration for, the spinoff CS&L (i) issued about USD 1.5 billion in bonds to Windstream Services, which Windstream Services used to exchange for, and retire, certain of its outstanding debt and (ii) entered into term loan credit agreements, a portion (about USD 1 billion) of which Windstream Services used to exchange, and retire, certain of its outstanding debt. Prior to the spin-off, Windstream Services had about USD 8 billion in outstanding debt. Attached are (i) press release from CS&L announcing the spin-off, (ii) press from Windstream Holdings announcing the spin-off (iii) the last 10K filled by Windstream Holdings in February 2015 showing the amount of Windstream Services debt outstanding prior to the spinoff on page F-54 and (iv) information statement discussing pending spin-off and debt exchange filed as an exhibit to the March 26, 2015 8K filed by Communications Sales & Leasing, Inc. The questions for the DC are:
- Has a succession event occurred with respect to Windstream Services?
- Are CS&L and Windstream Services the successors?
- Is the succession Date April 24, 2015?
We also request that Markit update the name of the Windstream entity from Windstream Corporation to Windstream Services LLC.
| Date | Description | Document |
|---|---|---|
| Closed | May 20, 2015: DC Members determined that the definition of “succeed” in prong (ii) of Section 2.2(d) under the 2014 ISDA Credit Derivatives Definitions includes the issuance of Bonds or incurrence of Loans that are exchanged for Relevant Obligations. However, in prong (ii) of Section 2.2(c) under the 2003 ISDA Credit Derivatives Definitions, the definition of “succeed” only includes the issuance of Bonds. As such, DC Members resolved that under the 2014 ISDA Credit Derivatives Definitions both Communications Sales & Leasing, Inc. and Windstream Services LLC were the Successors to Windstream Services LLC, while under the 2003 ISDA Credit Derivatives Definitions, there was no Successor resulting from the exchange which occurred with respect to the spin-off on April 24, 2015. | |
| Ongoing | May 18, 2015: The Americas DC legal subcommittee continues to consider the question of whether there is a Successor to Windstream Services LLC under both the 2003 ISDA Credit Derivatives Definitions and the 2014 ISDA Credit Derivatives Definitions. The legal subcommittee determined additional time was required to review the question and requested a delay to research the issue. | |
| Request Accepted by DC | ||
| Request Accepted by DC | ||
| Request Accepted by DC | ||
| Pending DC Consent |