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Frontier Communications gets $575 million senior unsecured term loan
By Sara Rosenberg
New York, Oct. 17 - Frontier Communications Corp. closed on a new $575 million senior unsecured amortizing term loan due Oct. 14, 2016, according to an 8-K filed with the Securities and Exchange Commission on Monday.
CoBank, Royal Bank of Scotland, Deutsche Bank, RBC Capital Markets, Raymond James Bank and The Bank of Tokyo-Mitsubishi UFJ acted as the lead arrangers on the deal that was completed on Oct. 14, with CoBank as the administrative agent.
Pricing on the loan is Libor plus 287.5 basis points. The spread is based on a leverage grid that ranges from Libor plus 187.5 bps to 387.5 bps.
Covenants include a maximum permitted leverage ratio of 4.5 times.
Proceeds are being be used to repay in full the company's $200 million Rural Telephone Financing Cooperative term loan maturing on Oct. 24, 2011, its $143 million CoBank term loan maturing Dec. 31, 2012 and its $130 million CoBank term loan maturing Dec. 31, 2013, as well as for general corporate purposes.
Frontier Communications is a Stamford, Conn.-based provider of communications services.
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