FTRCQ Frontier Communications Corporation Class B

Frontier Communications Expands Frontier AnyWareTM Nationwide

Frontier Communications Corporation (NASDAQ: FTR) today announced that Frontier AnyWare is now available in all 50 states. Frontier AnyWare provides virtual communications in a cloud-based, Voice over Internet Protocol (VoIP) telecommunications solution for businesses.

“Frontier AnyWare is scalable and easy-to-use,” said Ken Arndt, Executive Vice President of Commercial Sales for Frontier. “It makes the transition to cloud-based technologies customizable, cost-effective and ideal for growing businesses,” Arndt concluded. A cloud-based offering, Frontier AnyWare eliminates the upfront cost of investing in on-premises PBX systems. An affordable, monthly subscription rate provides customers access to a flexible, virtual communications service that adapts to the needs of their business.

The service, provided by Frontier and powered by Mitel, offers a converged voice and data communication solution. Companies of all sizes are increasingly relying on cloud-based connectivity solutions for core business functions. “Cloud Services and Solutions” ranked second most desirable among top technology investments in Gartner’s 2017 CIO Agenda report.

“By moving business communications to the cloud, companies can leverage benefits like greater mobility and simplicity to enhance the speed and quality of their organization’s decision making,” said Todd Abbott, Executive Vice President of Global Sales for Mitel. “Frontier’s focus on driving cloud adoption is helping more businesses boost employee productivity, better serve customers and gain a competitive edge with feature-rich communications and collaboration features that deliver a consistent user experience in-office or on the road.”

Recently recognized as Mitel’s Top U.S. Channel Partner for the sixth year in a row, Frontier Communications provides specific solutions for every business segment, ranging from small and mid-sized businesses to enterprise customers, across a wide range of industry verticals. Frontier was also named Mitel’s Top U.S. Service Provider for 2016 in recognition of its strong growth in cloud.

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. Information about Mitel may be found at www.mitel.com.

EN
03/08/2017

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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