Frontier wraps $240 million incremental term loan B at 98.77 OID

By Sara Rosenberg

New York, July 2 – Frontier Communications Corp. completed syndication of its $240 million incremental senior secured covenant-light term loan B due June 2024 at an original issue discount of 98.77, according to a market source.

Original issue discount talk on the loan had been in the range of 98.75 to 99.

Pricing on the term loan B is Libor plus 375 basis points with a 0.75% Libor floor.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to repay a term loan due 2019.

The company is also amending its credit facilities with JPMorgan Chase Bank and CoBank ACB to replace certain operating subsidiary pledges with pledges of direct subsidiaries of Frontier and to strengthen the lenders’ security package.

Total debt is 4.8 times, and total net debt is 4.7 times.

Frontier is a Norwalk, Conn.-based provider of communications services to urban, suburban and rural communities.

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