https://seekingalpha.com/article/4336922-uniti-brother-can-you-spare-dime
Take aways from this article:
The 6% drop is hardly a one-off move. Windstream has been dropping its OIBDAR by 6%-7% annually almost like clockwork.
Whatever concessions Uniti makes, will likely be absorbed in the next 1-3 years by Windstream's declining business prospects.
UNIT cannot meet its bond requirements in 2023
UNIT must fund $825M in CAPEX to sustain the business under the new lease terms with WIN
Conclusion
Windstream's problems started long before COVID-19. But at this point the 6% decline in OIBDAR looks like a pipe dream. The more likely situation is far worse and regardless of what Uniti gives up in this brother-vs-brother negotiation, the end result is not good for Uniti. We might change our stance if management at Uniti is shown the exit and someone new can demonstrate ability to run this without spending millions in "growth capex" that never does seem to grow the bottom line. We will look to short this on any big bounce.