American telco Frontier Communications will issue debt in Q2 or Q3 next year as it looks to replace the bridge loan used to finance the US$2bn purchase of AT&T’s fixed-line business in Connecticut.
Speaking on a conference call yesterday in the wake…
American telco Frontier Communications will issue debt in Q2 or Q3 next year as it looks to replace the bridge loan used to finance the US$2bn purchase of AT&T’s fixed-line business in Connecticut.
Speaking on a conference call yesterday in the wake of the deal, Frontier’s CFO John Jureller said it would look to raise US$1.9bn and that the offering would be unsecured – similar to Frontier’s other recent debt. Jureller added that the debt will be raised via a public offering.
JP Morgan committed the US$1.9bn bridge loan to Frontier so it could fund the AT&T deal.
In its Q3 results the telco disclosed US$7.8bn in long term debt, US$258m of which is due within the next year.
Frontier is acquiring AT&T’s traditional fixed-line and fibre optic networks Connecticut, along with its customers, and expects to achieve US$200m in annual synergies and cost savings.
The transaction requires the approval of the Department of Justice, the Federal Communications Commission, and a number of state bodies in Connecticut. The telcos expect the deal to close in the second half of 2014.
JP Morgan acted as financial adviser to Frontier and Lazard was mandated as the financial adviser to the independent members of Frontier’s board.
