Summary
- FTR must manage their debt load if they are to be successful.
- $800 million in debt has been paid off since October.
- Debt maturities between now and 2022 are easily manageable.
- If they continue to pay down 2022 debt at a discount, they should be able to roll-over the remaining debt.
- Successful debt management means a price many times the current price.
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On March 12, Frontier Communications (FTR) rolled over secured 2021 debt of about $1.65 billion to 2027 and their revolver due in 2022 of $835 million to 2024. The $1.65 billion amount means they have cleared the runway to handle the Big Kahuna $2.2 billion debt due on Sept. 15, 2022. Moving the revolver to 2024 means it will be available if needed to help with the 2022 payment plan.
If we look at the latest Bond Schedule list, we can see that things have changed considerably just since Fiscal Year 2017.
