NORWALK, Conn.--(BUSINESS WIRE)--
Frontier Communications Corporation (NASDAQ:FTR) announced today that it
has amended its credit agreements with JPMorgan Chase Bank, N.A., and
CoBank ACB, respectively. Among other things, the amendments replace the
existing net leverage ratio maintenance test in the credit agreements
with a first lien net leverage ratio maintenance test which provides for
a maximum first lien net leverage ratio of 1.50 to 1.00 as of the last
day of any fiscal quarter, stepping down to 1.35 to 1.00 for the fiscal
quarters ending June 30, 2020 and thereafter, providing Frontier with
greater flexibility in executing on operational initiatives going
forward. The amendments also modify the covenants to permit junior liens
on any debt permitted to be incurred under the credit agreements, while
limiting the incurrence of first lien debt.
Daniel McCarthy, Frontier’s President and Chief Executive Officer, said,
“We are pleased to announce the amendments to our credit agreements,
demonstrating continued support from our lending group. We believe these
amendments will provide operating flexibility, better position us to
address our upcoming note maturities and optimize our access to the debt
markets.” Perley McBride, Frontier’s Chief Financial Officer, added,
“These amendments are an important part of our plan to obtain additional
flexibility with our credit facilities and manage our capital structure.”
About Frontier Communications
Frontier Communications Corporation (NASDAQ:FTR) is a leader in
providing communications services to urban, suburban, and rural
communities in 29 states. Frontier offers a variety of services to
residential customers over its fiber-optic and copper networks,
including video, high-speed internet, advanced voice, and Frontier Secure®
digital protection solutions. Frontier Business offers communications
solutions to small, medium, and enterprise businesses. More information
about Frontier is available at www.frontier.com.
Forward-Looking Statements
This press release contains “forward-looking statements” related to
management’s beliefs and expectations regarding the impact of the credit
agreement amendments. Forward-looking statements contain words such as
“believe,” “plan,” “expect,” “anticipate,” “intend,” “may,” “will” and
other similar terms. Forward-looking statements by their nature address
matters that are, to different degrees, uncertain. Particular
uncertainties that could cause actual outcomes to be materially
different than those expressed in such forward-looking statements
include adverse changes in the ratings given to our debt securities by
nationally accredited ratings organizations; the availability and cost
of financing in the credit markets; covenants in our indentures and
credit agreements that may limit our operational and financial
flexibility; and the risks and other factors contained in our filings
with the SEC, including our reports on Forms 10-K and 10-Q. Any of the
foregoing, or other events, could cause outcomes to vary materially from
the forward-looking statements included in this press release. Frontier
has no obligation to update or revise these forward-looking statements
and does not undertake to do so.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180125006254/en/
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, Corporate Communications
brigid.smith@ftr.com
Source: Frontier Communications Corporation