Frontier Announces Changes to Its Revolving Credit Facility Agreement

Frontier Communications Parent, Inc. (NASDAQ: FYBR) (“Frontier” or the “Company”) announced today that it has amended its revolving credit facility. This amendment permits the company to increase its issuance of new securitization debt, with a portion of the proceeds allocated for refinancing first lien debt.

“This amendment enhances our flexibility to utilize securitizations for funding our fiber expansion and refinancing higher-cost debt, while ensuring significant protections for our first lien debtholders,” said Scott Beasley, Chief Financial Officer of Frontier.

Frontier, the largest dedicated fiber internet provider in the U.S., initiated its first fiber securitization notes in August 2023. This was part of a $2.1 billion financing deal backed by fiber assets and customer contracts in the Dallas metro area.

“Securitization presents an attractive investment-grade financing option, offering investors returns secured by the recurring cash flows from our fiber assets. This amendment will facilitate additional securitizations alongside traditional bank and bond financings, ensuring that first lien holders are protected,” added Beasley.

The amended revolving credit facility increases Frontier’s combined cap on certain first lien debt, securitization and receivables facilities, and non-loan party debt from $2.5 billion to $5.5 billion.

The following protections were established for secured creditors under the new terms:

  • For securitization and receivables facilities exceeding approximately $2.1 billion and up to $4.0 billion, 40% of the securitization issuance will be used to retire first lien debt.
  • For facilities exceeding $4.0 billion and up to the new $5.5 billion cap, 100% of the securitization issuance will be used to retire first lien debt.
  • Securitization and receivables facilities are restricted to Frontier’s assets in Texas and Florida, two of the company’s largest fiber markets.

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