Frontier plans $500 million term loan as part of Chapter 11 exit

By Paul A. Harris

Portland, Ore., Sept. 28 – Frontier Communications Corp.'s plans for exiting Chapter 11 bankruptcy include putting in place a $500 million term loan B (B3/B+/BB+), according to documents which circulated the market on Thursday, disclosing other parts of the exit financing.

In additional to the loan, the company intends to issue $1.15 billion of seven-year first-lien senior secured notes (B+/BB+). The notes offering kicks off on a Tuesday investor call and will be marketed on a roadshow through Thursday via Goldman Sachs, JPMorgan, Deutsche Bank, Barclays, Morgan Stanley and Credit Suisse.

The Norwalk, Conn.-based telecom, which filed for Chapter 11 bankruptcy protection in April 2020, plans to use the proceeds plus proceeds from the loan and the notes, cash available from its proposed $625 million exit revolving facility and cash on hand, to fund its exit from bankruptcy by means of paying off its pre-petition first-lien notes.

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