Frontier Communications extends $40 million of LoC commitments to 2013

By Susanna Moon

Chicago, Sept. 12 - Frontier Communications Corp. amended its credit agreement with Deutsche Bank AG, New York Branch as administrative agent, extending $40 million of the commitments to Sept. 20, 2013, according to an 8-K filing with the Securities and Exchange Commission.

Two letters of credit, one for $20 million expiring March 2013 and the other for $20 million expiring September 2013, will be issued shortly, the filing noted.

As previously reported, Frontier closed on a $190 million unsecured letter-of-credit facility due Sept. 20, 2011 on Sept. 8, 2010, and exercised its option to extend up to $100 million of the commitments to Sept. 20, 2012 on Sept. 20, 2011.

The facility was obtained in connection with its July 1, 2010 acquisition of wireline operations from Verizon Communications.

The declining amounts of the letters of credit since September 2010 reflect the company's spending against its capital investment commitments in West Virginia, the company said in the filing.

The company is required to pay an annual facility fee on the available commitment, regardless of usage.

Frontier Communications is a Stamford, Conn.-based provider of regulated and unregulated voice, data, and video services to residential, business and wholesale customers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.