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Frontier Communications places $3.2B, 4-part offering; terms

Frontier Communications today completed a $3.2 billion, four-part offering of senior notes via joint bookrunners J.P. Morgan, Credit Suisse, Bank of America, Barclays, Citi, Deutsche Bank, Morgan Stanley and RBS, according to sources. Strong demand led to a $1.2 billion upsizing and the addition of five-year and 12-year tranches. All four tranches priced at talk. Frontier will use proceeds from the deal to help fund a cash payment to Verizon in connection with the acquisition by Frontier of Verizon landline assets in 14 states. Frontier in May 2009 announced the acquisition of 4.8 million access lines from Verizon in a deal that will expand the company’s presence in rural U.S. markets. Terms:

Issuer New Communications Holdings (Frontier)
Ratings BB/Ba2
Amount $500 million
Issue senior notes (144A)
Coupon 7.875%
Price 100
Yield 7.875%
Spread T+516
LIBOR eq. L+506
Maturity April 15, 2015
Call nc-life
Trade March 26, 2010
Settle April 12, 2010 (T+10)
Books JPM/CS/Barc/BAML/Citi/MS/DB/RBS
Jt Leads
Co’s.
Px talk 7.75-8%
Notes carries T+50 make-whole call provision; w/ change-of-control put @ 101.
Issuer New Communications Holdings (Frontier)
Ratings BB/Ba2
Amount $1.1 billion
Issue senior notes (144A)
Coupon 8.25%
Price 100
Yield 8.25%
Spread T+492
LIBOR eq. L+496
Maturity April 15, 2017
Call nc-life
Trade March 26, 2010
Settle April 12, 2010 (T+10)
Books JPM/CS/Barc/BAML/Citi/MS/DB/RBS
Jt Leads
Co’s.
Px talk 8.25% area
Notes carries T+50 make-whole call provision; w/ change-of-control put @ 101.
Issuer New Communications Holdings (Frontier)
Ratings BB/Ba2
Amount $1.1 billion
Issue senior notes (144A)
Coupon 8.50%
Price 100
Yield 8.50%
Spread T+464
LIBOR eq. L+471
Maturity April 15, 2020
Call nc-life
Trade March 26, 2010
Settle April 12, 2010 (T+10)
Books JPM/CS/Barc/BAML/Citi/MS/DB/RBS
Jt Leads
Co’s.
Px talk 8.5% area
Notes carries T+50 make-whole call provision; w/ change-of-control put @ 101.
Issuer New Communications Holdings (Frontier)
Ratings BB/Ba2
Amount $500 million
Issue senior notes (144A)
Coupon 8.75%
Price 100
Yield 8.75%
Spread T+459
LIBOR eq. L+466
Maturity April 15, 2022
Call nc-life
Trade March 26, 2010
Settle April 12, 2010 (T+10)
Books JPM/CS/Barc/BAML/Citi/MS/DB/RBS
Jt Leads
Co’s.
Px talk 8.75% area
Notes carries T+50 make-whole call provision; w/ change-of-control put @ 101.