Frontier Communications announced the closing of its previously announced fiber securitization notes offering.
The offering consists of $750 million aggregate principal amount of secured fiber network revenue term notes, consisting of $530 million 6.2% Series 2024-1, Class A-2 term notes, $73 million 7.0% Series 2024-1, Class B term notes and $147 million 11.2% Series 2024-1, Class C term notes, each with an anticipated repayment date in May 2031. Collectively, the notes have a weighted average yield of approximately 7.4%.
The notes are secured by certain of Frontier’s fiber assets and associated customer contracts in North Texas and qualify as green bonds.
This transaction is the company’s second fiber securitization offering.
“The completion of our second securitization offering in less than a year highlights the value of Frontier’s fiber network and the attractiveness of fiber as critical digital infrastructure,” said Scott Beasley, Chief Financial Officer of Frontier. “These transactions are a cost-efficient way to fund our fiber strategy and Build Gigabit America, while also providing flexibility to refinance higher-cost debt, extend our term loan and lower our overall cost of capital.”
- In 2023, the company reported that it had doubled its fiber footprint since 2020, reaching two million fiber broadband customers.
