Frontier announces $1.6 Billion fiber securitization offering and $500 Million variable funding notes commitmentFrontier announces $1.6 Billion fiber securitization offering and $500 Million variable funding notes commitment

NORWALK, Conn. – Frontier Communications Parent, Inc. (NASDAQ: FYBR) ("Frontier" or the "Company") today announced that a limited-purpose, bankruptcy remote, indirect subsidiary of the Company (the "Issuer") has priced $1.586 billion of aggregate principal amount of secured fiber network revenue term notes, consisting of $1.119 billion 6.60% Series 2023-1, Class A-2 term notes, $155 million 8.30% Series 2023-1, Class B term notes and $312 million 11.50% Series 2023-1, Class C term notes, each with an anticipated repayment term of five years (collectively, the "Notes"). Collectively, the Notes have a weighted average yield of approximately 8.797%. The Notes will be secured by certain of Frontier's fiber assets and associated customer contracts in the Dallas metropolitan area and constitute the first offering of green bonds by a Frontier subsidiary.

In connection with the offering of the Notes, the Issuer entered into a commitment for a $500 million variable funding note facility (the "Variable Funding Notes") with a delayed draw feature, subject to leverage tests and other customary drawing conditions.

Frontier intends to use the net proceeds of the offering to, among other things, defease certain existing indebtedness and for general corporate purposes, including potential investments or expenditures, such as capital expenditures and research and development, in line with Frontier's fiber expansion and copper migration strategies.

Read the full press release here.

Frontier Communications