Frontier begins $700 million tender offer for 9¼%, 6¼% senior notes

By Jennifer Chiou

New York, Sept. 17 - Frontier Communications Corp. announced a tender offer to purchase for up to $700 million in cash any and all of its $640,512,000 of 9¼% senior notes due 2011 and a portion of its $700 million of 6¼% senior notes due 2013.

The company will purchase as many 6¼% notes as it can for a total payment that is equal to the lesser of $250 million and the difference between $700 million and the total payment made for tendered 9¼% notes.

The offer ends at 9 a.m. ET on Oct. 16.

For each $1,000 principal amount, the Stamford, Conn.-based communications company said it will pay $1,092.50 for the 9¼% notes and par for the 6¼% notes, including a $30.00 tender premium for those who tender by 5 p.m. ET on Sept. 30.

The company will also pay accrued interest to the payment date.

Frontier said the offer is subject to the satisfaction or waiver of a number of conditions, including the completion of its concurrent note offering of not less than $450 million of unsecured senior debt securities that closes no later than Oct. 16.

Credit Suisse Securities (USA) LLC (800 820-1653 or call collect 212 538-1862) is the coordinating dealer manager, and Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. are the co-dealer managers. MacKenzie Partners, Inc. (800 322-2885 or call collect 212 929-5500) is the information agent.

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