Frontier Communications Corporation Announces Successful Completion of Debt Tender Offer
STAMFORD, Conn.--(BUSINESS WIRE)--
Frontier Communications Corporation (NASDAQ: FTR) announced today
that it has successfully completed its previously announced debt tender
offer and has applied the full "Maximum Payment Amount" of $500 million
toward the repurchase of its 8.250% Senior Notes due 2014 (the "2014
Notes") and 7.875% Senior Notes due 2015 (the "2015 Notes").
As a result, Frontier accepted for purchase $49.5 million aggregate
principal amount of 2015 Notes tendered as of 9:00 a.m. New York City
time on June 15, 2012 (the "Expiration Date") for total consideration of
approximately $54 million, plus accrued and unpaid interest to the date
of purchase. Frontier previously accepted for purchase $400 million
aggregate principal amount of 2014 Notes for total consideration equal
to $446 million, plus accrued and unpaid interest to the date of
purchase on June 1, 2012.
Frontier used proceeds from the sale of its offering of $500 million of
9.250% Senior Notes due 2021, plus cash on hand, to purchase the 2014
Notes and 2015 Notes. As a result of the successful tender offer, the
amount of 2014 Notes and 2015 Notes outstanding are $200 million and
$450.5 million, respectively.
The tender offer is expected to result in an after-tax charge of
approximately $43 million for the quarter ended June 30, 2012, or $0.04
The offer to purchase the 2015 Notes was oversubscribed. A total of
$147,612,000 aggregate principal amount were validly tendered as of the
Expiration Date, and accordingly, the principal amount of 2015 Notes
that the Company purchased from each tendering holder was prorated based
on a proration factor of approximately 34%.
Deutsche Bank Securities Inc. served as the Coordinating Dealer Manager
and Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC
served as Co-Dealer Managers for the tender offer.
This announcement does not constitute an offer to buy or the
solicitation of an offer to sell any securities in any jurisdiction or
in any circumstances in which such offer or solicitation is unlawful.
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.
Vice President, Investor Relations and Assistant
AVP Corp. Communications
Source: Frontier Communications Corporation
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