New Street Research - Frontier Communications Corporation Class B (FTRCQ) FYBR Quick Hit: Frontier announces at least $1.05BN in securitized debt

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New Street Research

Vikash Harlalka

FYBR Quick Hit: Frontier announces at least $1.05BN in securitized debt

Frontier announced today that it intends to offer $1.05BN in securitized debt, with the ability to upsize. At the end of 1Q23, Frontier had $2.7BN in liquidity, of which $2.0BN was in cash & equivalents with the rest being available revolver capacity. This was more than sufficient to meet the capital needs until mid-2024. This new debt raise should extend that beyond 2024. These notes will be secured by Frontier’s fiber assets and customer contracts in the Dallas metropolitan area.

20/07/2023 1 EN

Underlying

Frontier Communications Corporation Class B

Frontier Communications is a holding company. Through its subsidiaries, the company is a provider of communications services. The company conducts business with both consumer and commercial customers. For consumer customers, the company provides broadband, video, voice and other services and products. The company delivers these services over a combination of fiber and copper-based networks. The company's commercial customers consist of: small, medium and larger enterprise customers, whereby the company provides services including broadband service, Ethernet service, circuit-based services, SD-WAN, and managed Wi-Fi; and wholesale customers, which buy both voice and data services to supplement their own network infrastructure.

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US35906A3068 Pink OTC Markets United States

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New Street Research

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Analysts

Vikash Harlalka

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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).

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FYBR Quick Hit: Frontier announces at least $1.05BN in securitized debt

FYBR Quick Hit: ABS debt priced

FYBR: Cash flow in steady state

ACP Part V: FCC releases survey results

Thai Telcos Auction concludes, no major surprises

VIPS 2Q25 Preview: Lowering 2Q Topline Estimates

Microsoft vs. OpenAI: Implications for investors?

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