Why Uniti Group Shares Are Trading Lower

Zinger Key Points
  • Uniti Group shares are trading lower by 11.2% during Monday's session.
  • The company announced plans for a $300 million offering.

Uniti Group Inc UNIT shares are trading lower by 11.2% to $3.94 during Monday’s session after the company announced plans for a $300 million offering of 10.50% Senior Secured Notes due 2028 by its subsidiaries.

The notes will be guaranteed by the company and its subsidiaries, secured by first-priority liens on their assets. Regulatory approval is pending for some subsidiaries to guarantee the notes. Once approved, the notes are expected to be exchanged for additional notes under an existing indenture.

Proceeds will be used for general corporate purposes, possibly including funding for the merger with Windstream, subject to various conditions. If successful, the bridge facility commitments related to the Windstream merger will be reduced to zero.

See Also: Why Veteran Wall Street Investor Believes We’re Still In A Bull Market

How To Buy UNIT Stock

By now you're likely curious about how to participate in the market for Uniti Group – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Uniti Group, which is trading at $3.93 as of publishing time, $100 would buy you 25.45 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, UNIT has a 52-week high of $6.71 and a 52-week low of $3.39.

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