Frontier Closes $1.0 Billion of Second Lien Secured Notes

Rhea-AI Summary

Frontier Communications announced the closure of a private offering of $1.0 billion in second lien secured notes due 2030, with a 6.000% annual interest. The proceeds will fund capital investments, operational costs from fiber expansion, and general corporate purposes. The notes were sold to qualified institutional buyers under Rule 144A and Regulation S, and they are not registered under the Securities Act, limiting their sale in the U.S.

Positive

• Successful closure of a $1.0 billion private offering indicating strong demand.
• Proceeds will be used for capital investments and operational costs, supporting growth in fiber services.

Negative

• None.

NORWALK, Conn.--(BUSINESS WIRE)-- Frontier Communications Holdings, LLC (the “Issuer”), a consolidated subsidiary of Frontier Communications Parent, Inc. (NASDAQ: FYBR) (“Frontier” or the “Company”) today announced the closing of its previously announced private offering of $1.0 billion aggregate principal amount of second lien secured notes due 2030 (the “Notes”). The Notes bear interest at 6.000% per year and were issued at a price equal to 100% of the aggregate principal amount.

Frontier intends to use the net proceeds of the offering to fund capital investments and operating costs arising from the Company's fiber build and expansion of its fiber customer base, and for general corporate purposes.

The Notes and the related guarantees were offered and sold only to persons reasonably believed to be “qualified institutional buyers” in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to certain non-U.S. persons in compliance with Regulation S under the Securities Act. The Notes and the related guarantees have not been registered for sale 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.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, the Notes or any other securities, and shall not constitute an offer to sell, solicitation of an offer to buy, or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Frontier Communications

Frontier Communications offers a variety of services to residential and business customers over its fiber-optic and copper networks in 25 states, including high-speed Internet, advanced voice, video, and Frontier Secure^® digital protection solutions. Frontier Business™ offers communications solutions to small, medium, and enterprise businesses.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211013006019/en/

Investor Contact

Spencer Kurn

SVP, Investor Relations

+1 401 225 0475

spencer.kurn@ftr.com

Source: Frontier Communications Parent, Inc.

FAQ

What is the total amount raised in Frontier Communications' recent notes offering?

Frontier Communications raised $1.0 billion in its recent private offering.

What is the interest rate on the secured notes issued by Frontier Communications?

The secured notes issued by Frontier Communications bear an interest rate of 6.000% per year.

What is the maturity date for the notes issued by Frontier Communications?

The notes issued by Frontier Communications are due in 2030.

How will Frontier Communications use the proceeds from the notes offering?

The proceeds will fund capital investments, operating costs from fiber expansion, and for general corporate purposes.

Who were the buyers of the Frontier Communications notes?

The notes were offered and sold only to qualified institutional buyers under Rule 144A.