NORWALK: Frontier Communications Corporation has priced its previously announced offering of $1.150 billion aggregate principal amount of First Lien Secured Notes due 2027 in a private transaction, a news release said.

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 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.

As previously disclosed, on April 14, 2020, Frontier Communications and certain of its subsidiaries commenced voluntary cases under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York.

On August 21, 2020, the Bankruptcy Court confirmed Frontier Communications’ plan of reorganization 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.

All offers of the First Lien Secured Notes were 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 and to non-U.S. persons outside of the United States under Regulation S under the Securities Act.

The First Lien Secured 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.

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.

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