NORWALK, Conn.--(BUSINESS WIRE)--Frontier Communications Corporation (OTC: FTRCQ) announced today that it intends to offer $1.8 billion aggregate principal amount of First Lien Secured Notes due 2028 and $1.0 billion aggregate principal amount of Second Lien Secured Notes due 2029 in a private transaction.
Frontier Communications intends to use the proceeds from the offering, together with proceeds of the new incremental first lien term loan facility, if any, 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.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall there be any sales of securities mentioned in this press release 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 to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and to non-U.S. persons outside of the United States under Regulation S under the Securities Act. The Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
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.