Frontier Communications Prices $1.55 Billion First Lien Secured Notes Offering and $1.00 Billion Second Lien Secured Notes Offering

Nachrichtenquelle: Business Wire (engl.)
20.11.2020, 00:25  |  107   |   |   

Frontier Communications Corporation (OTC: FTRCQ) (“Frontier Communications”) announced today that it has priced its previously announced offering of $1.55 billion aggregate principal amount of First Lien Secured Notes due 2028 (the “First Lien Secured Notes”) and $1.00 billion aggregate principal amount of Second Lien Secured Notes due 2029 (the “Second Lien Secured Notes” and, together with the First Lien Secured Notes, the “Notes”) in a private transaction. The First Lien Secured Notes will bear interest at 5.00% per year and will be sold at a price equal to 100% of the principal thereof. The Second Lien Secured Notes will bear interest at 6.75% per year and will be sold at a price equal to 100% of the principal thereof. The settlement of the Notes is expected to occur on or about November 25, 2020, subject to customary closing conditions.

Frontier Communications intends to use the proceeds from the offering, together with proceeds of the new $750 million incremental first lien term loan facility and cash on hand to (i) repay all outstanding borrowings under our prepetition term loan B-1 facility due 2024, (ii) repay in full the existing prepetition 8.500% Second Lien Secured Notes due 2026, and (iii) pay related interest, fees and expenses incurred in connection therewith. The offering of Notes is subject to market and other conditions.

As previously disclosed, on April 14, 2020, Frontier Communications and certain of its subsidiaries commenced voluntary cases (the “Chapter 11 Cases”) under Chapter 11 of the United States Bankruptcy Code (“Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). On August 27, 2020, the Bankruptcy Court confirmed Frontier Communications’ plan of reorganization (the “Plan”) for the resolution of the outstanding claims against and interests in Frontier Communications pursuant to section 1121(a) of the Bankruptcy Code. The implementation of the Plan is dependent upon a number of conditions typical in similar reorganizations, including the obtainment of regulatory approval. On September 17, 2020, the Bankruptcy Court issued a final order authorizing Frontier Communications to obtain debtor-in-possession financing, including approval for this offering.

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Frontier Communications Prices $1.55 Billion First Lien Secured Notes Offering and $1.00 Billion Second Lien Secured Notes Offering Frontier Communications Corporation (OTC: FTRCQ) (“Frontier Communications”) announced today that it has priced its previously announced offering of $1.55 billion aggregate principal amount of First Lien Secured Notes due 2028 (the “First Lien …

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