Frontier Communications Prices $1.650 Billion First Lien Secured Notes Offering
March 12 2019 - 6:03PM
Business Wire
Frontier Communications Corporation (NASDAQ:FTR) announced today
that it has priced its previously announced private offering of
$1.650 billion aggregate principal amount of First Lien Secured
Notes due 2027 (the “First Lien Secured Notes”). The First Lien
Secured Notes will bear interest at 8.000% per year and will be
sold at a price equal to 100% of the principal thereof. The
settlement of the First Lien Secured Notes is expected to occur on
or about March 15, 2019, subject to customary closing
conditions.
Frontier intends to use the proceeds from the offering to repay
all outstanding indebtedness under its senior secured term loan A
facility, which matures in March 2021, and its credit agreement
with CoBank ACB, which matures in October 2021, and to pay related
fees and expenses. In addition, upon the closing of the First Lien
Secured Notes offering, Frontier expects to amend its credit
agreement with JPMorgan Chase Bank, N.A. to, among other things,
extend the maturity date of at least $835 million of its $850
million revolving credit facility from February 2022 to February
2024 (subject to certain springing maturity dates). The maturity
date of any revolver commitment not extended will remain February
2022.
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 First Lien Secured Notes were made only
by means of a private offering memorandum to persons reasonably
believed to be qualified institutional buyers under Rule 144A under
the Securities Act of 1933, as amended (the "Securities Act") and
to non-U.S. persons outside of the United States under Regulation S
under the Securities Act.
The First Lien Secured 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) is committed
to helping customers navigate internet and entertainment services.
As a leader in providing communications services to urban,
suburban, and rural communities in 29 states, Frontier offers a
variety of services to residential customers over its FiOS and
Vantage fiber-optic and its copper networks, including video,
high-speed internet, advanced voice, and Frontier Secure® digital
protection solutions. Frontier Business™ offers communications
solutions to small, medium and enterprise businesses.
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: the completion of
settlement of the First Lien Secured Notes offering and the other
factors that are described in our filings with the U.S. Securities
and Exchange Commission, including our report on Form 10-K. 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: https://www.businesswire.com/news/home/20190312005930/en/
Frontier Communications Corporation
INVESTORS:Luke Szymczak,203-614-5044Vice President,
Investor Relationsluke.szymczak@ftr.com
MEDIA:Brigid Smith,203-614-5042AVP, Corporate
Communicationsbrigid.smith@ftr.com
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