Frontier Communications Announces Offering of $500 Million of Senior Notes due 2021
STAMFORD, Conn.--(BUSINESS WIRE)--
Frontier Communications Corporation (NASDAQ: FTR) announced today
that it has commenced a registered offering of $500 million aggregate
principal amount of senior notes due 2021 (the "Notes").
Frontier intends to use the net proceeds from the offering of the Notes
to finance its cash tender offer announced today for up to $500 million
to repurchase a portion of its outstanding 8.25% Senior Notes due 2014
and 7.875% Senior Notes due 2015. If the tender offer is terminated for
any reason, or if any net proceeds otherwise remain following the tender
offer, Frontier intends to use the net proceeds for general corporate
purposes and for the selective purchase of its outstanding debt.
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 prior to
registration or qualification under the securities laws of any such
jurisdiction. A registration statement relating to the Notes became
effective on May 10, 2012, and the offering is being made by means of a
prospectus supplement.
About Frontier Communications
Frontier Communications Corporation (NASDAQ: FTR) offers voice,
broadband, satellite video, wireless Internet data access, data security
solutions, bundled offerings, specialized bundles for residential
customers, small businesses and home offices and advanced business
communications for medium and large businesses in 27 states. Frontier's
approximately 15,500 employees are based entirely in the United States.
Forward-Looking Language
This press release contains forward-looking statements that are made
pursuant to the safe harbor provisions of The Private Securities
Litigation Reform Act of 1995. These statements are made on the basis of
management's views and assumptions regarding future events and business
performance. Words such as "believe," "anticipate," "expect" and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements (including oral representations) involve
risks and uncertainties that may cause actual results to differ
materially from any future results, performance or achievements
expressed or implied by such statements. These risks and uncertainties
are based on a number of factors, including but not limited to: the risk
that the growth opportunities from the Transaction may not be fully
realized or may take longer to realize than expected; the effects of
greater than anticipated competition requiring new pricing, marketing
strategies or new product or service offerings and the risk that we will
not respond on a timely or profitable basis; reductions in the number of
our access lines that cannot be offset by increases in broadband
subscribers and sales of other products and services; the effects of
competition from cable, wireless and other wireline carriers; our
ability to maintain relationships with customers, employees or
suppliers; the effects of ongoing changes in the regulation of the
communications industry as a result of federal and state legislation and
regulation, or changes in the enforcement or interpretation of such
legislation and regulation; the effects of any unfavorable outcome with
respect to any current or future legal, governmental or regulatory
proceedings, audits or disputes; the effects of changes in the
availability of federal and state universal funding to us and our
competitors; our ability to adjust successfully to changes in the
communications industry and to implement strategies for growth;
continued reductions in switched access revenues as a result of
regulation, competition or technology substitutions; our ability to
effectively manage service quality in our territories and meet mandated
service quality metrics; our ability to successfully introduce new
product offerings, including our ability to offer bundled service
packages on terms that are both profitable to us and attractive to
customers; changes in accounting policies or practices adopted
voluntarily or as required by generally accepted accounting principles
or regulations; our ability to effectively manage our operations,
operating expenses and capital expenditures, and to repay, reduce or
refinance our debt; the effects of changes in both general and local
economic conditions on the markets that we serve, which can affect
demand for our products and services, customer purchasing decisions,
collectability of revenues and required levels of capital expenditures
related to new construction of residences and businesses; the effects of
technological changes and competition on our capital expenditures and
product and service offerings, including the lack of assurance that our
network improvements will be sufficient to meet or exceed the
capabilities and quality of competing networks; the effects of increased
medical and pension expenses and related funding requirements; changes
in income tax rates, tax laws, regulations or rulings, or federal or
state tax assessments; the effects of state regulatory cash management
practices that could limit our ability to transfer cash among our
subsidiaries or dividend funds up to the parent company; our ability to
successfully renegotiate union contracts in 2012 and thereafter; changes
in pension plan assumptions and/or the value of our pension plan assets,
which would require us to make increased contributions to the pension
plan in 2013 and beyond; the effects of customer bankruptcies and home
foreclosures, which could result in difficulty in collection of revenues
and loss of customers; adverse changes in the credit markets or in the
ratings given to our debt securities by nationally accredited ratings
organizations, which could limit or restrict the availability, or
increase the cost, of financing; limitations on the amount of capital
stock that we can issue to make acquisitions or to raise additional
capital until July 2012; our indemnity obligation to Verizon for taxes
which may be imposed upon them as a result of changes in ownership of
our stock may discourage, delay or prevent a third party from acquiring
control of us during the two-year period ending July 2012 in a
transaction that stockholders might consider favorable; our ability to
pay dividends on our common shares, which may be affected by our cash
flow from operations, amount of capital expenditures, debt service
requirements, cash paid for income taxes and liquidity; and the effects
of severe weather events such as hurricanes, tornadoes, ice storms or
other natural or man-made disasters. These and other uncertainties
related to our business are described in greater detail in our filings
with the Securities and Exchange Commission, including our reports on
Forms 10-K and 10-Q, and the foregoing information should be read in
conjunction with these filings. We do not intend to update or revise
these forward-looking statements to reflect the occurrence of future
events or circumstances.
Frontier Communications Corporation
Investor:
Gregory
Lundberg, 203-614-5044
Assistant Treasurer & Investor Relations
greg.lundberg@ftr.com
or
Media:
Brigid
Smith, 203-614-5042
AVP Corp. Communications
brigid.smith@ftr.com
Source: Frontier Communications Corporation
News Provided by Acquire Media
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