Frontier Communications Enters into New $1.5 Billion Term Loan Agreement
August 13 2015 - 8:00AM
Business Wire
Frontier Communications Corporation (NASDAQ:FTR) announced
today that it has entered into a new $1.5 billion senior
secured delayed-draw term loan facility. The loan will be drawn
upon the closing of Frontier’s acquisition of Verizon
Communications Inc.’s wireline operations in California,
Florida and Texas, which is expected at the end of March
2016. Frontier completed the equity portion of its financing plan
for this acquisition with a $2.75 billion dual-tranche equity
offering in June 2015.
"This is a very positive arrangement that provides acquisition
financing at favorable terms and rates," said John Jureller,
Executive Vice President and Chief Financial Officer of Frontier.
“The proceeds will reduce the amount of public high-yield debt to
be raised.” He added, "We are pleased our relationship banks
recognize the growth opportunities our planned Verizon transaction
offers.”
About Frontier Communications
Frontier Communications Corporation (NASDAQ:FTR) offers
broadband, voice, video, wireless Internet data access, data
security solutions, bundled offerings, specialized bundles for
residential customers, small businesses and home offices and
advanced communications for medium and large businesses in 28
states. Frontier's approximately 18,200 employees are based
entirely in the United States. More information is available
at www.frontier.com.
Forward-Looking Statements
This document contains "forward-looking statements," related to
future, not past, events. Forward-looking statements address our
expected future business and financial performance and financial
condition, and contain words such as "expect," "anticipate,"
"intend," "plan," "believe," "seek," "see," "will," "would," or
"target." Forward-looking statements by their nature address
matters that are, to different degrees, uncertain. These risks and
uncertainties include, but are not limited to: Frontier’s ability
to complete the acquisition of Verizon’s California, Florida and
Texas wireline operations, including the ability to complete the
financing of the acquisition; the ability to successfully integrate
the acquired operations into Frontier’s existing operations; the
sufficiency of the assets to be acquired from Verizon to enable the
combined company to operate the acquired business; the ability to
enter into or obtain, or delays in entering into or obtaining,
certain agreements and consents necessary to operate the acquired
business as planned; the ability to obtain, delays in obtaining or
adverse conditions contained in any required regulatory approvals
for the Verizon transaction; and the other factors that are
described in our filings with the U.S. Securities and Exchange
Commission, including our reports on Forms 10-K and 10-Q. These
risks and uncertainties may cause our actual future results to be
materially different than those expressed in our forward-looking
statements. We do not undertake to update or revise these
forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20150813005599/en/
Frontier Communications CorporationInvestors:Luke Szymczak,
203-614-5044Vice President, Investor
Relationsluke.szymczak@FTR.comorMedia:Brigid Smith,
203-614-5042AVP, Corporate
Communicationsbrigid.smith@FTR.com
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