Frontier Communications Parent, Inc. (FYBR) (“Frontier” or the “Company”) today announced that a limited-purpose, bankruptcy remote, indirect subsidiary of the Company has priced $750 million aggregate principal amount of secured fiber network revenue term notes, consisting of $530 million 6.3% Series 2024-1, Class A-2 term notes, $73 million 7.1% Series 2024-1, Class B term notes and $147 million 11.4% Series 2024-1, Class C term notes, each with an anticipated repayment date in May 2031 (collectively, the “Notes”). Collectively, the Notes have a weighted average yield of approximately 7.4%. The Notes will be secured by certain of Frontier’s fiber assets and associated customer contracts in North Texas and will qualify as an offering of green bonds.
Frontier intends to use the net proceeds of the offering to, among other things, repay certain existing indebtedness of the Company and its non-securitization subsidiaries, including a portion of the outstanding principal amount of the Company’s term loan facility, and for general corporate purposes, including potential investments or expenditures, such as capital expenditures and research and development, in line with Frontier’s fiber expansion and copper migration strategies.
The Company expects the offering of the Notes to close on or around July 1, 2024, subject to satisfaction of various closing conditions. There can be no assurance regarding the timing of closing or that the sale of the Notes will be completed.
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. Any offers of the Notes will be made only by means of a private offering memorandum.