Frontier launches $500 million term loan at Libor plus 500 bps

By Sara Rosenberg

New York, Sept. 29 – Frontier Communications Corp. was scheduled to hold a lender call at 10 a.m. ET on Tuesday to launch its $500 million seven-year DIP-to-exit term loan B (B3/B+/BB+) that is talked at Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 98, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Barclays, Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are the leads on the deal.

Commitments are due at 5 p.m. ET on Oct. 1, the source added.

The company is also getting a $625 million exit revolving credit facility.

Proceeds from the new debt and cash on hand will be used to fund the company’s exit from bankruptcy by paying off pre-petition first-lien notes.

Frontier Communications is a Norwalk, Conn.-based telecommunications company. The company filed bankruptcy on April 14 under Chapter 11 case number 20-22476.

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