Frontier Communications Prices $6.6 Billion Senior Notes Offering
September 11 2015 - 5:30PM
Business Wire
Frontier Communications Corporation (NASDAQ:FTR) announced today
that it has priced its previously announced private offering of
$6.6 billion aggregate principal amount of unsecured Senior Notes,
as follows: $1 billion of 8.875% Senior Notes due 2020; $2 billion
of 10.500% Senior Notes due 2022; and $3.6 billion of 11.000%
Senior Notes due 2025. Each will be issued at a price equal to 100%
of its principal amount.
Frontier intends to use the proceeds from the offering to
finance a portion of the cash consideration payable in connection
with its previously announced acquisition of the wireline
properties of Verizon Communications Inc. in California, Florida
and Texas and to pay related fees and expenses. The acquisition is
expected to close by the end of the first quarter of 2016. The net
proceeds of the offering will be deposited in an escrow account to
partially fund the acquisition or, if the acquisition is terminated
or otherwise not consummated on or before August 6, 2016, to redeem
the Notes at par plus accrued interest.
This press release shall not constitute an offer to sell, or the
solicitation of an offer to buy, any securities, nor shall there be
any sales of securities mentioned in this press release in any
jurisdiction in which such offer, solicitation or sale would be
unlawful. All offers of the Senior Notes were made only by means of
a private offering memorandum to qualified institutional buyers
under Rule 144A under the Securities Act of 1933, as amended (the
"Securities Act") and to persons outside of the United States under
Regulation S under the Securities Act.
The Senior Notes have not been registered under the Securities
Act or the securities laws of any other jurisdiction and may not be
offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
About Frontier Communications
Frontier Communications Corporation (NASDAQ: FTR) offers
broadband, voice, video, wireless Internet data access, data
security solutions and bundled offerings 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.
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/20150911005904/en/
Frontier Communications CorporationINVESTORS:John
Gianukakis, 203-614-5708Vice President and
Treasurerjohn.gianukakis@ftr.comorLuke Szymczak, 203-614-5044Vice
President, Investor
Relationsluke.szymczak@ftr.comorMEDIA:Brigid Smith,
203-614-5042AVP, Corporate Communicationsbrigid.smith@ftr.com
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