STAMFORD, Conn.--(BUSINESS WIRE)--
Frontier Communications Corporation (NASDAQ:FTR) announced today that it
has entered into a new $350 million senior unsecured delayed draw term
loan facility with CoBank, ACB, as administrative agent, lead arranger
and a lender. The loan will be drawn upon closing of the Company’s
acquisition of AT&T Inc.’s wireline business, statewide fiber network,
and U-verse video and satellite TV customers in Connecticut, which is
expected in the fourth quarter of 2014. The proceeds of the term loans
will be used to partially finance the acquisition.
The Company has also entered into a new $750.0 million revolving credit
facility with JPMorgan Chase Bank, N.A., as administrative agent, and
the joint lead arrangers, joint bookrunners, syndication agent and joint
documentation agents named therein. The revolving credit facility is
scheduled to mature on May 31, 2018. The facility replaces the Company’s
existing revolving credit facility, which was scheduled to mature on
November 3, 2016.
“This is a very positive arrangement that provides financing for our
pending acquisition on favorable terms and rates,” said John Jureller,
Executive Vice President and Chief Financial Officer of Frontier. He
added, “Our banks recognize our plans to capture the growth available
through the Connecticut acquisition, and we appreciate the support of
our existing and new relationship banks. As we’ve previously indicated,
we expect to be in the public markets in the second or third quarter of
2014 for the remainder of the acquisition’s permanent financing in
substitution of the previously committed bridge loan financing.” John
Gianukakis, Vice President and Treasurer of Frontier, noted “The
extension of the revolving credit facility provides ‘rainy-day’
liquidity for Frontier for years to come. We appreciate the continued
long-term confidence and support demonstrated by our bank group.”
About Frontier Communications
Frontier Communications Corporation (NASDAQ:FTR) offers broadband,
voice, satellite video, wireless Internet data access, data security
solutions, bundled offerings, specialized bundles for residential
customers, small businesses and home offices and advanced communications
for medium and large businesses in 27 states. Frontier’s approximately
13,700 employees are based entirely in the United States. More
information is available at www.frontier.com.
Frontier Communications Corporation
Investors:
Luke
Szymczak, 203-614-5044
Vice President, Investor Relations
luke.szymczak@ftr.com
or
Media:
Brigid
Smith, 203-614-5042
AVP, Corp. Comm.
brigid.smith@ftr.com
Source: Frontier Communications Corporation