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Frontier details $350 million delayed-draw loan, $750 million revolver
By Toni Weeks
San Luis Obispo, Calif., June 4 - Frontier Communications Corp. gave more details about its new $350 million delayed-draw senior term loan and new $750 million revolving credit facility in an 8-K filing with the Securities and Exchange Commission.
The credit facilities were arranged on June 2 with JPMorgan Chase Bank, NA as the administrative agent for the revolver and with CoBank, ACB as the administrative agent, lead arranger and a lender for the term loan.
Loans under the revolver will bear interest at the adjusted Libor rate plus 150 basis points to 250 bps, with the exact margin based on the company's debt ratings. There is also a commitment fee of 25 bps to 45 bps, also based on ratings.
The new revolver is available for general corporate purposes, but may not used to fund dividends, and will mature May 31, 2018. It replaces the company's existing revolver, which was scheduled to mature Nov. 3, 2016.
Borrowings under the term loan facility will bear interest at Libor plus 187.5 bps to 387.5 bps. The exact margin is based on Frontier's total leverage ratio.
The term loan will be drawn upon and used to partially fund the closing of the company's acquisition of AT&T Inc.'s Connecticut wireline business, which is expected to occur in the fourth quarter of 2014, as previously reported. The maturity date for the term facility is the earlier of five years after the draw date and Dec. 15, 2019.
Repayment of the term loan will be made in quarterly payments of $8.75 million beginning one fiscal quarter after the draw date, with the balance to be repaid at maturity.
Frontier is a telecommunications company based in Stamford, Conn.
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