FTRCQ Frontier Communications Corporation Class B

Frontier Communications Providing Statewide Support for Commercial Customers as Communities Recover

Frontier Communications commercial operations teams are supporting business partners as they assess damage caused by hurricanes in Texas and Florida.

Frontier asks Commercial Customers and other businesses to call 1-800 921-8102, once commercial power has been restored to their location so field and service representatives may be assigned to assist in the repair and replacement of damaged equipment and provide resources to help businesses recover from storm damage. “We are working with our vendor partners to get phone systems, data network equipment, conferencing stations, routers, servers, switches and security appliances available for our customers,” said Ken Arndt, Executive Vice President – Commercial Sales, Product & Marketing, “We are able to provide replacement equipment and advice anywhere in the state. We are here to help businesses get back up and running as fast as possible, even if they are not in our service area,” Arndt said.

Frontier is working closely with phone and network equipment vendors like Mitel, Cisco, HP and Ruckus Wireless, to help repair and replace any damaged equipment. Frontier has also arranged for equipment payments to be deferred for 90 days for approved customers in Texas and Florida, “By leveraging these relationships, we are able to assist businesses inside and outside of our network service area,” Arndt said.

“We are deploying our teams and service personnel with the simple mission to repair or replace damaged equipment and help our community recover from the storms we have faced together,” said Arndt. “We will work with our business communities to recover and be stronger than before by implementing new technology solutions, like cloud-based communications solutions, and replacing damaged equipment quickly,” he concluded.

Businesses are encouraged to call 1-800 921-8102, to be assigned a Frontier employee who can expedite the review of their current situation and help repair and replace damaged equipment.

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
15/09/2017

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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