Rural US telco Frontier Communications has launched a US$750m common stock offer, and a US$1.750bn mandatory convertible preferred stock offer, the company announced.
The respective offerings will be priced at par values of US$0.25 per share and US$0.01…
Rural US telco Frontier Communications has launched a US$750m common stock offer, and a US$1.750bn mandatory convertible preferred stock offer, the company announced.
The respective offerings will be priced at par values of US$0.25 per share and US$0.01 per share. Frontier said it would grant the underwriters an option to purchase up to an additional US$75m of common stock and up to an additional US$175m of mandatory convertible preferred stock.
The proceeds will finance part of the cash portion of its previously announced US$10.54bn acquisition of Verizon Communications wireline assets in California, Florida and Texas. The deal is expected to close in the first half of 2016. The company noted that the offerings are not contingent upon each other or on the closing of the acquisition.
The joint book-running managers for the offerings are JP Morgan, BofA Merrill Lynch and Citigroup. The co-managers are Barclays Capital, Credit Suisse, Morgan Stanley, Mizuho Securities, Deutsche Bank, Goldman Sachs and UBS.
Frontier CFO John Jureller was cited saying in February that the company would finance the deal by raising up to US$3bn in equity during the second or third quarter, and up to US$7.9bn in junk bonds and leveraged loans during the third or fourth quarter.
Working on the debt offering will be JP Morgan as lead arranger, with Citigroup, and Bank of America acting as co-leads, he said at the time.
The three banks provided an 18-month bridge loan covering the entire price of the acquisition, announced on 5 February.
