US-based rural broadband and satellite TV provider Frontier Communications has raised US$575m through a five-year senior unsecured amortizing term loan.
Proceeds are to be used to refinance three of the company’s existing debt facilities as well as…
US-based rural broadband and satellite TV provider Frontier Communications has raised US$575m through a five-year senior unsecured amortizing term loan.
Proceeds are to be used to refinance three of the company’s existing debt facilities as well as for general corporate purposes. Frontier plans to repay its US$200m Rural Telephone Financing Cooperative term loan, which matures 24 October 2011, its
US$143m CoBank term loan maturing 31 December 2012, and its US$130m CoBank term loan maturing year-end 2013.
The new facility pays 2.875% over Libor and has a leverage ratio covenant of no more than 4.5 times. CoBank ACB was lead arranger on the facility with RBS, Deutsche Bank, RBC Capital Markets, Raymond James and Bank of Tokyo-Mitsubushi UFJ joint lead arrangers.
Commenting on the transaction, Donald Shassian, chief financial officer of Frontier, said: “We are pleased to continue our strong relationship with CoBank and welcome new lenders to our bank group. This financing eliminates maturities through 2012 and enables us to retain strong liquidity through our existing, undrawn US$750m revolving credit facility.”
Frontier specialises in offering bundled triple play services to both residential and business customers in rural areas. The company has approximately 4 million customers in 27 US states. It provides satellite DTH services via Dish Network and in early August 2011 announced a multi-year renewal with the satellite broadcaster.
