Boston, MA 09/04/2014 (wallstreetpr) – Recently Frontier Communications Corp (NASDAQ:FTR) announced $1.55 billion of senior notes and later confirmed that it had priced the aggregate principal amount of these notes.
Where will the offerings be used:
As per the information made public by the company, the total offering of these notes will be utilized to generate funding for the acquisition of Wireline Properties of AT&T. The company expects to execute this transaction in the 4Q 2014. According to information provided by the management of Frontier Communications Corp (NASDAQ:FTR), the entire money generated through these senior notes will be kept in an escrow account. It will later be used to fund the acquisition, but in case the acquisition is terminated or not executed till August 17, 2015, then it will be utilized to redeem all the notes at par in addition with accrued interest.
These senior notes consist of two types of notes- Senior notes worth of $775 million aggregate principal amount due by 2021 and senior notes worth o $775 million principal amount due by 2025. Those who opt for senior notes due by 2021 will get an annual interest of 6.250% while those who opt for senior notes due by 2025 will be given an interest rate of 6.875% per annum. The issue price of these notes will be equal to the principal amount.
External parties involved in this offering:
As per the reports, Frontier Communications Corp (NASDAQ:FTR) has recruited Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co LLC as the lead joint book-running managers for this offering. Co-managers for this senior notes offering are Credit Suisse Securities (USA) LLC, Barclays Capital Inc., RBS Securities Inc. and Deutsche Bank Securities Inc.
Meanwhile, Fitch Ratings has given a BB rating to the senior notes offering of FTR due by 2021 and 2025. Rating outlook of FTR is stable which gives a positive indication in the market.