On Tuesday, Uniti Group Inc. (NASDAQ:UNIT) shared some exciting news about landing a 20-year contract for a significant long-haul fiber and conduit project with a valued existing hyperscale customer.
This project entails laying down over 130 route miles of advanced multi-conduit systems coupled with high-strand count fiber cables, creating a robust connection from Montgomery to Cuba, Alabama.
What’s notable about this new east-west infrastructure is that it will facilitate a crucial link between key data centers, offering a diverse route to other north-south long-haul pathways, culminating just east of Meridian, Mississippi.
Greg Ortyl, Uniti’s President of Wholesale & Strategic Accounts, underscored the surging demand from hyperscale clients who are eager for multiple fiber routes to guarantee network reliability.
“We continue to see our hyperscale customers seeking three, four, or even more fiber paths into strategic data center locations to provide the network redundancy they demand, and we are excited to participate in future solutions that are also strategic for Uniti,” Ortyl mentioned.
The anticipated completion and delivery of these fiber routes are set for 2026.
Moving ahead, it’s worth mentioning that Uniti recently announced pricing for a $589 million offering of secured fiber network revenue term notes.
These notes, organized into Class A-2, B, and C tranches, are backed by fiber network assets along with customer contracts located across Florida and the Gulf Coast regions of Louisiana, Mississippi, and Alabama.
The expected yield from these notes is around 6.5%, with repayment anticipated by April 2030, further bolstering Uniti’s expansion within the fiber infrastructure domain.
In market updates, UNIT shares experienced a slight uptick of 0.92%, reaching $5.925 as of Tuesday’s latest check.
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This piece on Uniti’s latest fiber project initially appeared on Benzinga.com. Keep in mind, Benzinga doesn’t dispense investment advice. All rights reserved.
