Little Rock-based Windstream Corp. on Friday said it has formed a holding company that will become a publicly traded parent company of Windstream and its subsidiaries.
Windstream Holdings Inc. will trade on the Nasdaq Stock Exchange under the existing Windstream ticker symbol "WIN" starting Tuesday, the telecommunications company said in a statement.
"The new ownership design will enhance Windstream's corporate structure and provide greater financial and strategic flexibility in the future," the company said, adding that the new structure is similar to those of other telecommunications-industry firms.
Existing Windstream common stock will automatically convert to equivalent shares of Windstream Holdings Inc. stock on a one-for-one basis at 3 p.m. Friday, the company said.
Windstream's current board of directors and officers will oversee both companies, the statement said.
In addition. the company said there will be no change in Windstream's current dividend practice as a result of the change. The company has maintained a 25-cent quarterly dividend since late 2006.
Fitch Ratings said the holding company's formation doesn't change Windstream's credit profile and held it at "BB+", meaning it's prone to economic changes, with a negative rating outlook.
Read tomorrow's Arkansas Democrat-Gazette for full details.