Frontier raises $575M in new financing to pay down debt
Frontier Communications (NYSE: FTR) now has a bit more power to pay off some outstanding debts as the service provider just secured $575 million in new financing.
The new funds will be used to pay back the remaining outstanding principal on three debt facilities that are set to mature before the end of 2011 and for general corporate purposes.
These three debt facilities include: a $200 million Rural Telephone Financing Cooperative term loan maturing Oct. 24, 2011, a $143 million CoBank term loan maturing Dec. 31, 2012, and a $130 million CoBank term loan maturing Dec. 31, 2013.
Frontier said the senior unsecured amortizing term loan will mature on Oct. 14, 2016. The lead arranger of the facility was CoBank ACB, which will also serve as the administrative agent.
- see the release
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