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Frontier Announces Amendment to its Revolving Credit Facility

By: Frontier Communications Parent, Inc. via Business Wire

May 23, 2024 at 07:30 AM EDT

Frontier Communications Parent, Inc. (NASDAQ: FYBR) (“Frontier” or the “Company”) today announced the execution of an amendment to its revolving credit facility. The amendment increases the amount of new securitization debt the company may issue and requires that a portion of the proceeds be used to refinance first lien debt.

“This amendment allows us more flexibility to use securitizations to fund our fiber build and to refinance more expensive debt, while also providing important protections for our first lien debtholders,” said Scott Beasley, Chief Financial Officer of Frontier.

Frontier is the largest pure-play fiber internet provider in the country and issued its first fiber securitization notes in August 2023 as part of a $2.1 billion financing backed by fiber assets and associated customer contracts in the Dallas metropolitan area.

“Securitization is an attractive investment-grade financing tool that offers investors returns backed by the recurring cash flows of our fiber assets. This amendment will allow for additional securitizations alongside more traditional bank and bond financings, while working to ensure first lien holders are not disadvantaged,” added Beasley.

Under the terms of the amended revolving credit facility, Frontier increased its combined cap on certain first lien debt, securitization and receivables facilities, and non-loan party debt from $2.5 billion to $5.5 billion.

Additionally, the following protections were established for secured creditors:

For securitization and receivables facilities in excess of approximately $2.1 billion and up to $4.0 billion, Frontier will use 40% of securitization issuance to retire first lien debt.
For those in excess of $4.0 billion and up to the new $5.5 billion cap, Frontier will use 100% of securitization issuance to retire first lien debt.
Securitization and receivable facilities are limited to Frontier’s assets in Texas and Florida, two of the company’s larger fiber markets.

About Frontier

Frontier (NASDAQ: FYBR) is the largest pure-play fiber provider in the U.S. Driven by our purpose, Building Gigabit America®, we deliver blazing-fast broadband connectivity that unlocks the potential of millions of consumers and businesses. For more information about Frontier, visit us at www.frontier.com. Investors can learn more at investor.frontier.com.

Forward-Looking Statements

This release contains “forward-looking statements” related to future events. Forward-looking statements address the Company’s expectations or beliefs concerning future events, including the Company’s financing plans, the position of existing debt holders, the Company’s continued fiber build, the Company’s future operating and financial performance, the credit rating of future debt, investor returns and other matters. These statements are made based on management’s views and assumptions as of the date of this release, regarding future events and performance. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. A wide range of factors could materially affect future developments and performance, including but not limited to: our significant indebtedness, our ability to incur substantially more debt in the future and covenants in the agreements governing our current indebtedness that may reduce our operating and financial flexibility; economic uncertainty, volatility in financial markets and rising interest rates could limit our ability to access capital or increase the cost of capital needed to fund business operations, including our fiber expansion plans; our ability to successfully implement strategic initiatives, including our fiber buildout and other initiatives to enhance revenue and realize productivity improvements; and certain other factors set forth in our other filings with the SEC. This list of factors that may affect future performance and the accuracy of forward-looking statements is illustrative and is not intended to be exhaustive. You should consider these important factors, as well as the risks and other factors contained in the Company’s filings with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K and subsequent SEC filings. The Company does not intend, nor does it undertake any duty, to update any forward-looking statements, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240523748585/en/

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