Frontier Communications Corp. priced $1.6 billion in second-lien secured notes due 2026.
The notes, which will bear an annual interest rate of 8.500%, will be sold at a price equivalent to 100% of the principal. Settlement of the notes is likely to occur on or about March 19, subject to customary closing conditions.
Frontier plans to use the proceeds to fund the cash consideration payable in connection with its previously announced offers to purchase for cash certain of its senior notes maturing in 2020, 2021, 2022 and 2023, and to pay related fees and expenses, according to a March 8 press release.
Each of the tender offers will expire April 2, unless extended or terminated earlier.
