FTRCQ Frontier Communications Corporation Class B

Frontier Communications Offers Tips to Cope with Hurricane Irma

Frontier Communications operations teams in Florida are continuing preparations for possible severe weather associated with Hurricane Irma, expected to make landfall in south Florida over the weekend. Operations teams and management are taking steps to prepare including:

  • Double-checking all safety equipment and supplies used by field technicians.
  • Placing emergency network supplies throughout company facilities.
  • Taking inventory of supplies that will be needed in the aftermath of severe weather to restore the network.

As part of its preparations, the company is issuing these reminders:

  • Stay far away from any downed cables or power lines. Contact Frontier at 800-921-8102 (business) or 800-921-8101 (residential) to report any fallen telephone poles or cables.

Take preventative steps to be sure you can communicate in the event commercial power is lost, such as:

  • Customers who rely on cordless phones should consider plugging a traditional corded phone directly into the wall. In the event of a commercial power outage, corded phones on the copper network will still operate; cordless ones will not. If commercial power is unavailable, generators and batteries in Frontier's central offices serve as a backup. Phone lines generally will have enough power in them to use a corded phone. For customers using FiOS phone services, the battery backup will supply voice service for up to eight hours.
  • Customers' voicemail boxes are protected within Frontier's network and will continue to operate despite a power loss; and
  • Be sure wireless devices such as cell phones, laptops and tablet devices are all charged in advance of the severe weather.

"We know that being able to communicate during a storm is critical to our customers’ well-being and public safety,” said Melanie Williams, Frontier’s Senior Vice President, Operations in Florida. “Our team is working to prepare for extreme weather and will be there for our business and residential customers to quickly and safely restore any affected network services.”

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.

Please note that Frontier has a new logo that is available for download at our Press Room.

EN
07/09/2017

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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