Frontier Communications Parent, Inc. (NASDAQ: FYBR) has announced its plan to offer approximately $750 million aggregate principal amount of secured fiber network revenue term notes. The notes have an anticipated repayment date in May 2031 and will be secured by certain fiber assets and associated customer contracts in North Texas. This offering is in line with Frontier's fiber expansion and copper migration strategies.
The company intends to use the net proceeds of the offering to repay certain existing indebtedness, including a portion of the outstanding principal amount of the company’s term loan facility, and for general corporate purposes, such as potential investments or expenditures, including capital expenditures and research and development.
The notes will be offered and sold in the United States only to qualified institutional buyers and certain accredited investors, as well as to non-U.S. persons outside the United States. It's important to note that the offer and sale of the notes have not been registered under the securities laws of any jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
This press release emphasizes that it does not constitute an offer to sell or a solicitation of an offer to buy the notes or any other securities. Any offers of the notes will be made only by means of a private offering memorandum.
The announcement reflects the company's strategic move to raise capital through the offering of secured fiber network revenue term notes, signaling its continued investment in expanding its fiber network and supporting its corporate objectives. The market has reacted to these announcements by moving the company's shares -0.6% to a price of $26.51. If you want to know more, read the company's complete 8-K report here.
