Frontier Files Investor Presentation Detailing Significant Financial Benefits of Proposed Acquisition by Verizon
Frontier Communications (NASDAQ: FYBR) has filed an investor presentation detailing the benefits of its proposed acquisition by Verizon. The all-cash offer of $38.50 per share represents a 37% premium to the pre-announcement price and a 66% premium to the past year's average. The deal follows a comprehensive strategic review where Frontier's Board explored multiple alternatives, including remaining independent. The offer represents a 54% improvement from initial valuations and was deemed superior to all other options, including Frontier's standalone plan which faces challenges such as negative cash flows through 2027 and high leverage. The Board unanimously recommends stockholders vote in favor of the transaction.
Frontier Communications (NASDAQ: FYBR) ha presentato una relazione agli investitori che illustra i benefici della sua proposta di acquisizione da parte di Verizon. L'offerta completamente in contante di $38,50 per azione rappresenta un premio del 37% rispetto al prezzo pre-annuncio e un premio del 66% rispetto alla media dell'anno scorso. L'accordo segue una revisione strategica completa in cui il consiglio di Frontier ha esplorato molteplici alternative, incluso il rimanere indipendenti. L'offerta rappresenta un miglioramento del 54% rispetto alle valutazioni iniziali ed è stata considerata superiore a tutte le altre opzioni, incluso il piano autonomo di Frontier che affronta sfide come i flussi di cassa negativi fino al 2027 e un alto indebitamento. Il consiglio raccomanda unanimemente agli azionisti di votare a favore della transazione.
Frontier Communications (NASDAQ: FYBR) ha presentado una presentación a inversores que detalla los beneficios de su propuesta de adquisición por parte de Verizon. La oferta totalmente en efectivo de $38.50 por acción representa una prima del 37% respecto al precio previo al anuncio y una prima del 66% en comparación con la media del año pasado. El acuerdo sigue a una revisión estratégica exhaustiva en la que la Junta de Frontier exploró múltiples alternativas, incluyendo la opción de permanecer independiente. La oferta representa una mejora del 54% respecto a las valoraciones iniciales y se considera superior a todas las demás opciones, incluido el plan independiente de Frontier, que enfrenta desafíos como flujos de efectivo negativos hasta 2027 y un alto apalancamiento. La Junta recomienda unánimemente a los accionistas que voten a favor de la transacción.
프론티어 커뮤니케이션즈 (NASDAQ: FYBR)는 버라이즌에 의한 제안된 인수의 이점을 자세히 설명하는 투자자 프레젠테이션을 제출했습니다. 주당 $38.50의 전액 현금 제안은 발표 이전 가격 대비 37%의 프리미엄을 나타내며, 지난해 평균 가격 대비 66%의 프리미엄을 보입니다. 이 거래는 프론티어 이사회가 독립 유지와 같은 여러 대안을 탐색한 포괄적인 전략 검토를 따릅니다. 이 제안은 초기 평가보다 54% 개선된 것으로 나타났으며, 2027년까지의 부정적인 현금 흐름 및 높은 레버리지와 같은 문제에 직면한 프론티어의 독립 계획을 포함하여 다른 모든 옵션보다 우수한 것으로 평가되었습니다. 이사회는 주주들에게 거래에 찬성하는 투표를 할 것을 만장일치로 권고합니다.
Frontier Communications (NASDAQ: FYBR) a déposé une présentation à l'intention des investisseurs détaillant les avantages de son acquisition proposée par Verizon. L'offre toute en espèces de 38,50 $ par action représente une prime de 37 % par rapport au prix précédant l'annonce et une prime de 66 % par rapport à la moyenne de l'année passée. L'accord fait suite à une révision stratégique complète au cours de laquelle le conseil d'administration de Frontier a exploré plusieurs alternatives, y compris le maintien de l'indépendance. L'offre représente une amélioration de 54 % par rapport aux évaluations initiales et a été jugée supérieure à toutes les autres options, y compris le plan autonome de Frontier qui fait face à des défis tels que des flux de trésorerie négatifs jusqu'en 2027 et une forte dette. Le conseil recommande à l'unanimité aux actionnaires de voter en faveur de la transaction.
Frontier Communications (NASDAQ: FYBR) hat eine Investor-Präsentation eingereicht, die die Vorteile der vorgeschlagenen Übernahme durch Verizon detailliert darstellt. Das vollständige Barangebot von 38,50 $ pro Aktie stellt eine Prämie von 37 % zum Preis vor der Ankündigung dar und eine Prämie von 66 % zum Durchschnitt des letzten Jahres. Die Vereinbarung folgt einer umfassenden strategischen Überprüfung, bei der der Vorstand von Frontier mehrere Alternativen, einschließlich der Unabhängigkeit, geprüft hat. Das Angebot stellt eine Verbesserung von 54 % gegenüber den ursprünglichen Bewertungen dar und wurde als überlegen gegenüber allen anderen Optionen bewertet, einschließlich des eigenständigen Plans von Frontier, der Herausforderungen wie negative Cashflows bis 2027 und eine hohe Verschuldung hat. Der Vorstand empfiehlt einstimmig, dass die Aktionäre für die Transaktion stimmen.
- All-cash offer of $38.50 per share represents a 37% premium to pre-announcement price
- 66% premium to volume-weighted average share price over the past year
- 54% improvement from initial November 2023 valuation
- Immediate liquidity and certainty of value for stockholders
- Price exceeded nearly all analyst price targets
- Standalone plan projects negative cash flows through 2027
- High leverage and additional debt funding requirements
- Increasing competition from cable and other broadband providers
- Exposure to declining legacy services
- Risk of immediate value loss if transaction is not approved
Insights
The proposed
Key financial highlights include:
- A
54% improvement from initial November 2023 valuations - Premium exceeds most analyst price targets
- Immediate liquidity and value certainty
- Addresses concerns about negative cash flows through 2027
- Mitigates risks of high leverage and additional debt funding requirements
This acquisition strategically addresses critical market challenges facing Frontier:
- Intensifying competition from cable providers and FTTH overbuilders
- Growing threat from converged wireline/wireless offerings
- Declining legacy services in a challenging sector
- Market uncertainty in the current macroeconomic environment
Verizon’s All-Cash Offer of
Frontier’s Board of Directors Strongly Recommends Stockholders Vote “FOR” the Proposed Acquisition by Verizon
Highlights from the presentation include:
-
Verizon’s best and final all-cash offer of
$38.50 37% premium to Frontier’s pre-announcement price and a significant premium to all other measures of Frontier’s historical stock performance. - Frontier’s highly qualified Strategic Review Committee and Board of Directors led a robust and exhaustive process to evaluate its standalone plan and strategic options.
- The Strategic Review Committee and Board unanimously and unequivocally believe the Verizon offer is in the best interests of stockholders and recommends stockholders vote “for” the transaction.
Superior Value for Frontier Stockholders
Verizon’s all-cash offer of
Comprehensive Board-Led Strategic Review Process
Frontier’s majority-independent Strategic Review Committee and Board of Directors thoroughly explored and evaluated multiple strategic alternatives including a sale, joint ventures, and remaining independent and executing towards Frontier’s standalone plan. The Board unanimously concluded that the transaction with Verizon is in the best interest of Frontier stockholders. The Strategic Review Committee and Board solicited interest from all logical potential parties, including four strategic and 13 financial parties. This deliberate and competitive process resulted in a
Transaction Addresses Sensitivities Inherent in Ambitious Standalone Plan
Over the last four years, Frontier has made remarkable progress in executing its ambitious strategy, expanding its fiber network and growing its fiber revenues. However, small changes in underlying value drivers can have a significant impact on the value of the company’s standalone plan. This proposed transaction with Verizon provides certainty against potential downside factors and sensitivities tied to Frontier’s ambitious standalone plan, including:
- Negative cash flows through 2027 and high leverage; additional debt funding required to sustain Frontier’s fiber network build plan, which may not be available at attractive terms
- Competition from cable and other broadband providers, including FTTH overbuilders, as well as increased competition from converged / bundled wireline and wireless offerings
- Exposure to declining legacy services facing secular headwinds
- Plan assumes status quo macroeconomic environment
Strategic Review Committee and Board Unanimously Believe that the Verizon Transaction is in the Best Interests of Stockholders
The Board has concluded through an exhaustive and competitive process that the Verizon transaction is in the best interests of Frontier stockholders. If the transaction is not approved, Frontier stockholders may face immediate loss of stockholder value with no assurance of equal or greater value in the future. Additionally, there are no assurances that Verizon or any other bidder will return with another offer.
The Board unanimously and unequivocally believes the Verizon transaction is in the best interests of stockholders and strongly recommends stockholders vote in favor of the transaction.
About Frontier
Frontier (NASDAQ: FYBR) is the largest pure-play fiber provider in the
Important Additional Information and Where to Find It
This communication may be deemed to be solicitation material in respect of the proposed acquisition of Frontier by Verizon. In connection with the proposed transaction, on October 7, 2024, Frontier filed a definitive proxy statement with the SEC. INVESTORS AND STOCKHOLDERS OF THE COMPANY ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING FRONTIER’S PROXY STATEMENT (IF AND WHEN AVAILABLE), BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and stockholders are or will be able to obtain the documents (if and when available) free of charge either from the SEC’s website at www.sec.gov or from Frontier’s Investor Relations website or by contacting Frontier’s Investor Relations by e-mail at ir@ftr.com.
Forward-Looking Statements
This communication contains “forward-looking statements” pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements address our expectations or beliefs concerning future events, including, without limitation, statements that relate to the proposed transaction. These statements are made on the basis of management’s views and assumptions, as of the time the statements are made, regarding future events and performance and contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “may,” “will,” “would,” or “target.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain.
A wide range of factors could materially affect future developments and performance, including but not limited to: (i) the risk that the proposed transaction may not be completed in a timely manner or at all; (ii) the failure to receive, on a timely basis or otherwise, the required approval of the proposed transaction by Frontier’s stockholders; (iii) the possibility that any or all of the various conditions to the consummation of the proposed transaction may not be satisfied or waived, including the failure to receive any required regulatory approvals from any applicable governmental entities (or any conditions, limitations or restrictions placed on such approvals); (iv) the possibility that competing offers or acquisition proposals for Frontier will be made; (v) the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive transaction agreement relating to the proposed transaction, including in circumstances which would require Frontier to pay a termination fee; (vi) the effect of the announcement or pendency of the proposed transaction on Frontier’s ability to attract, motivate or retain key executives and employees, its ability to maintain relationships with its customers, suppliers and other business counterparties, or its operating results and business generally; (vii) risks related to the proposed transaction diverting management’s attention from Frontier’s ongoing business operations; (viii) the amount of costs, fees and expenses related to the proposed transaction; (ix) the risk that Frontier’s stock price may decline significantly if the merger is not consummated; (x) the risk of shareholder litigation in connection with the proposed transaction, including resulting expense or delay; and (xi) (A) the risk factors described in Part I, Item 1A of Risk Factors in Frontier’s most recent Annual Report on Form 10-K for the year ended December 31, 2023 and (B) the other risk factors identified from time to time in Frontier’s other filings with the SEC. Filings with the SEC are available on the SEC’s website at http://www.sec.gov.
This list of factors that may affect actual results and the accuracy of forward-looking statements is illustrative and is not intended to be exhaustive. These risks and uncertainties may cause actual future results to be materially different than those expressed in such forward-looking statements. Frontier does not intend, nor does it undertake any duty, to update any forward-looking statements.
Participants in the Solicitation
Frontier and Frontier’s directors, executive officers and other members of management and employees, under SEC rules, may be deemed to be participants in the solicitation of proxies from the stockholders of Frontier in connection with the proposed transactions. Information about Frontier’s directors and executive officers is set forth in the Frontier Proxy Statement on Schedule 14A for its 2024 Annual Meeting of Stockholders, which was filed with the SEC on April 3, 2024. To the extent holdings of Frontier’s securities by its directors or executives officers have changed since the amounts set forth in such 2024 proxy statement, such changes have been or will be reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4 filed with the SEC, including the Form 4s filed by: John Harrobin on May 7, 2024; William McGloin on May 7, 2024 and June 21, 2024; Scott C.
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Investor Contact
Spencer Kurn
SVP, Investor Relations
+1 401-225-0475
spencer.kurn@ftr.com
Media Contact
Chrissy Murray
VP, Corporate Communications
+1 504-952-4225
chrissy.murray@ftr.com
Source: Frontier Communications Parent, Inc.
FAQ
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