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Network Assets Available for Spin-off into REIT Structure? What else?


txlaw
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Apparently, Windstream has obtained a private letter ruling from the IRS potentially allowing them to spin off their network assets (and associated RE assets) into a REIT:

 

http://files.shareholder.com/downloads/ABEA-43PVYW/3363897455x0x771662/dcf1ce80-c65b-4d8e-962f-3b13a6ac15fa/Press%20Release_072914.pdf

http://files.shareholder.com/downloads/ABEA-43PVYW/3363897455x0x771664/75c74b53-ccf1-4196-af0d-faaccf6f4d63/Investor%20Presentation_072914.pdf

http://www.bloomberg.com/news/2014-07-29/windstream-to-spin-off-telecom-assets-into-publicly-traded-reit.html

 

And they're planning on going forward with this highly unexpected plan. 

 

This private letter ruling seems to be a huge gift to the activist hedgies, who have been pushing for these types of spin-offs.  For example, I read somewhere the other day that one of the activists wants paper companies to start spinning off their assets into MLPs.

 

Any ideas of potential targets in telecom as well as in other industries for REITs/MLPs? 

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MLP/REIT/YieldCo madness is going to be looked back fondly by bankers for many a year.

 

Yeah, I just read an Andrew Ross Sorkin article about how GS, JPM, et al are making some nice fees from this trend.

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MLP/REIT/YieldCo madness is going to be looked back fondly by bankers for many a year.

 

+1

 

Made good money in ROIC (4 x or so) and hoping to do ok in Extendicare, but imno this pay is over done.

These assets dont deserve a 20x yield...

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