Frontier Communications extends early tender deadline for 8¼% notes

By Susanna Moon

Chicago, April 10 - Frontier Communications Corp. said it extended the early tender deadline in the modified Dutch auction tender offer for up to $225 million principal amount of its $1.04 billion of outstanding 8¼% senior notes due 2017.

Holders may now tender notes until 5 p.m. ET on April 11 to receive the total purchase price, according to a company press release. The early tender deadline was extended from 5 p.m. ET on April 9.

The withdrawal deadline expired as of the original early tender date, the company noted.

The tender offer includes $208.8 million of notes that the company agreed to repurchase in an unconditional and binding privately negotiated transaction, according to a previous press release.

Pricing for each $1,000 principal amount will be set using a modified Dutch auction procedure where holders submit bids ranging from $1,160 to $1,200 per $1,000 of notes.

The total payment will include an early tender premium of $30.00 per $1,000 of notes tendered by the early tender date.

The Dutch auction tender offer will also end at 9 a.m. ET on April 24. The offer began on March 27.

Any and all tender offer

As previously announced, the company also is tendering for any and all of its $300 million of 6 5/8% senior notes due 2015 and any and all of its $374,803,000 of 7 7/8% senior notes due 2015 on March 27.

The offers will end at 9 a.m. ET on April 24.

For each $1,000 principal amount, the company is offering $1,112.37 for the 6 5/8% notes and $1,141.91 for the 7 7/8% notes, both including a $30.00 early tender premium for those who tender prior to 5 p.m. ET on April 9.

Frontier will also pay accrued interest.

There is no minimum tender condition, but there is a financing condition.

Tendered notes may be withdrawn by 5 p.m. ET on April 9.

Settlement is expected to occur on the expiration date.

J.P. Morgan Securities LLC (800 245-8812 or collect 212 270-1200), Barclays (800 438-3242 or collect 212 528-7581), BofA Merrill Lynch (888 292-0070 or collect 646 855-3401), Citigroup Global Markets Inc. (800 558-3745 or collect 212 723-6106), Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-0083), Deutsche Bank Securities Inc. (866 627-0391 or collect 212 250-7527), Morgan Stanley & Co. LLC (800 624-1808 or collect 212 761-1057) and RBS Securities Inc. (877 297-9832 or collect 203 897-4825) are the dealer managers. MacKenzie Partners, Inc. (800 322-2885 or collect 212 929-5500) is the depositary and information agent.

As noted before, all three offers will be funded with proceeds of a concurrent debt offering. Frontier priced an upsized $750 million issue of non-callable 11-year senior notes at par to yield 7 5/8% on March 27, as reported by Prospect News. The deal was upsized from $500 million.

The Stamford, Conn., wireline telecommunications provider plans to use the proceeds to tender for its notes maturing in 2015 at their make-whole price, Prospect News reported.

© 2015 Prospect News.
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