NORWALK, Conn.--(BUSINESS WIRE)--Frontier Communications Corporation (OTC: FTRCQ) announced today that it has priced its previously announced offering of $1.150 billion aggregate principal amount of First Lien Secured Notes due 2027 in a private transaction. The First Lien Secured Notes will bear interest at 5.875% per year and will be sold at a price equal to 100% of the principal thereof. The settlement of the First Lien Secured Notes is expected to occur on or about October 8, 2020, subject to customary closing conditions.

Frontier Communications intends to use the proceeds from the offering, together with proceeds of a $500 million new first lien term loan facility (the “New Term Loan Facility”) and cash on hand to (i) repay in full the $1.650 billion principal balance of the existing prepetition 8.000% First Lien Secured Notes due 2027 and (ii) pay related interest, fees and expenses incurred in connection therewith. The offering of First Lien Secured Notes is subject to market and other conditions. The New Term Loan Facility will be entered into at a price equal to 98.50% of its face value and will bear interest at a rate equal to, at the option of Frontier Communications, either LIBOR plus 4.75% or Base Rate plus 3.75%, with a 1.00% LIBOR floor.

About Frontier Communications

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