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.

For more:
- see the release

Earnings summary: Wireline in the third quarter 2011

Related articles:
Frontier faces lawsuit over broadband surcharge
Frontier extends metro Ethernet footprint into 55 markets
Frontier's Wilderotter: Integration of Verizon's former systems ahead of schedule
Frontier taps into high school sports with "Game On!" video service

Suggested Articles

Wave Business is building a new fiber-optic data center in Oregon that's scheduled to be completed in the second quarter of this year.

Embattled Frontier Communications is working with creditors to file for bankruptcy by the middle of March as part of its efforts to right the ship.

Canonical announced its Anbox Cloud, which allows service providers and enterprises to distribute Android apps from the cloud by using containers.