FTRCQ Frontier Communications Corporation Class B

Frontier Communications’ AJ Burton Promoted to Vice President, Federal Regulatory Affairs

Frontier Communications Corporation (NASDAQ:FTR) today announced that Alton (“AJ”) Burton Jr., currently Director, Federal Regulatory Affairs, has been promoted to Vice President. Burton will report to Group Vice President Ken Mason.

“With regulatory and legal experience across the telecom sector, AJ is a tireless advocate for Frontier’s work with the FCC’s Connect America Fund and broadband expansion throughout rural America. We are excited about the great work he will continue to do for Frontier in his newly expanded role,” Mason said.

As Director, Federal Regulatory Affairs, Burton was responsible for Frontier’s regulatory advocacy before the Federal Communications Commission (FCC) on issues including broadband deployment, video rollout, communications infrastructure, universal service, and regulatory parity. He advised the company regarding business considerations and compliance with FCC regulations and regulatory developments on all issues, including net neutrality, privacy, and video. He led internal teams in responding to enforcement complaints, investigations, data requests, and informal consumer complaints. He also worked with state and legislative teams regarding interaction of FCC proposals and regulations with state and legislative proposals, regulations, and laws. With this promotion, Burton assumes an expanded role in these areas.

Prior to joining Frontier, Burton was an attorney at Hogan Lovells. He served as a visiting Law Clerk for the Honorable John D. Bates, and was an attorney with the State of Connecticut’s Division of Public Defender Services. Mr. Burton earned a B.A. from the University of Maryland (Summa Cum Laude) and his law degree from The University of Virginia School of Law (Order of the Coif).

About Frontier Communications

Frontier Communications Corporation (NASDAQ:FTR) is a leader in providing communications services to urban, suburban, and rural communities in 29 states. Frontier offers a variety of services to residential customers over its fiber-optic and copper networks, including video, high-speed internet, advanced voice, and Frontier Secure® digital protection solutions. Frontier Business™ offers communications solutions to small, medium, and enterprise businesses. More information about Frontier is available at www.frontier.com.

EN
04/04/2018

Underlying

Reports on Frontier Communications Corporation Class B

Vikash Harlalka
  • Vikash Harlalka

FYBR Quick Hit: ABS debt priced

Frontier announced pricing for its latest ABS debt this afternoon, raising $750MM. The offering consists of $530MM Class A-2 notes at 6.2%, $73MM Class B notes at 7.0%, and $147MM Class C notes at 11.2%. The average cost of debt is 7.4%, which is in-line with our expectation, and ~140bps lower than their last ABS debt issuance. These new tranches of debt have an anticipated repayment period of 7 years (vs. 5 years on the last issuance).

Jonathan Chaplin
  • Jonathan Chaplin

FYBR: Cash flow in steady state

Frontier management has set targets for EBITDA of $4BN and operating FCF of $3BN on a footprint with 10MM fiber locations, in steady state. We built a simple model to vet this outcome. Our model arrives at slightly lower EBITDA and UFCF; however, modest cost cuts get us to the target, and cost cuts are likely. In addition to vetting steady-state targets, the model illuminates how value is created in the fiber business. We built it so that you can easily change assumptions and see the impact on v...

Jonathan Chaplin
  • Jonathan Chaplin

ACP Part V: FCC releases survey results

The FCC released a survey that included more than 5,000 ACP households today. The FCC repeated the mistake of prior surveys by asking whether households were new to broadband with ACP as opposed to subscribers that are new to broadband with one of the subsidy programs that followed the pandemic (stimulus checks; EBB; ACP). They also asked the important question, which is “what will you do when ACP ends”. Our quick analysis here focuses mostly on the social costs of ACP going away. We will ...

Jonathan Chaplin
  • Jonathan Chaplin

FYBR: updating capex and funding through 2026

The Company’s new Capex disclosure provides a clear map for cash capex for the fiber project for the remainder of the 10MM location plan, which will take them into 2026. Stronger confidence in the capex trajectory for the next three years lends confidence to the FCF trajectory and funding requirements (we have eliminated a variable). This should make it easier for investors on the sidelines to underwrite the investment case.

Jonathan Chaplin
  • Jonathan Chaplin

Frontier Model Update

This note focuses on changes to the model following 4Q23 results. Earlier today, we published a review of results and additional thoughts following the earnings call. Our net adds, revenue and EBITDA are slightly higher. Capex and FCF burn are also higher. Our long-term thesis remains unchanged. Price target is $54.

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