FTRCQ Frontier Communications Corporation Class B

Frontier Communications Operations in Florida Return to Near-Normal Levels Thanks to Reliability and Resiliency of FiOS All-Fiber Network

Daily operations for Frontier Communications have returned to near normal levels after Hurricane Irma’s punishing sweep through the company’s six-county Florida service area (Hillsborough, Pinellas, Pasco, Polk, Manatee and Sarasota).

“The resiliency of Frontier’s buried all-fiber network was a significant differentiator in the market,” said Melanie Williams, Frontier’s Senior Vice President for Operations in Florida. “Where power was available, the services of the majority of Frontier’s FiOS-based customers remained operational despite Irma’s impact. Frontier customers who lost power saw their FiOS services automatically restored once electricity was available.”

Frontier’s central office and remote office facilities remained online throughout the storm, either because electricity was available or generator power kicked in, added Williams.

“For customers on our copper network with traditional corded phones, voice service continued to work regardless of power availability,” said Williams.

Frontier’s disaster recovery plan includes damage assessments and getting technicians into the field as soon as conditions allow and emergency management agencies provide the go-ahead. Frontier deployed 630 service technicians into the field as soon as the all-clear was given. This work force continues to address customer issues and new installations daily.

Other storm preparations included activation of Frontier’s Emergency Response Center; equipping fleet vehicles with extra fuel, fluids and lighting; double-checking all safety equipment, ensuring all back-up power supplies and generators are fully operational; ensuring supplies were available for plant and network restoration; and placing emergency network supplies throughout company facilities. On-going communications with employees assured their safety.

“Our network was resilient in the Tampa Bay area, as were our teams on the ground and call centers. I am proud of the level of preparation we put in to be ready for Irma’s impact,” said Williams. “It certainly made a difference.”

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 Edge™ 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
21/09/2017

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

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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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