Frontier Communications Parent, Inc. (NASDAQ: FYBR) (“Frontier” or the “Company”) announced the execution of an amendment to its revolving credit facility. The amendment increases the amount of new securitization debt the company may issue and requires that a portion of the proceeds be used to refinance first lien debt.

“This amendment allows us more flexibility to use securitizations to fund our fiber build and to refinance more expensive debt, while also providing important protections for our first lien debtholders,” said Scott Beasley, Chief Financial Officer of Frontier.

Frontier is the largest pure-play fiber internet provider in the country and issued its first fiber securitization notes in August 2023 as part of a $2.1 billion financing backed by fiber assets and associated customer contracts in the Dallas metropolitan area.

“Securitization is an attractive investment-grade financing tool that offers investors returns backed by the recurring cash flows of our fiber assets. This amendment will allow for additional securitizations alongside more traditional bank and bond financings, while working to ensure first lien holders are not disadvantaged,” added Beasley.

Under the terms of the amended revolving credit facility, Frontier increased its combined cap on certain first lien debt, securitization and receivables facilities, and non-loan party debt from $2.5 billion to $5.5 billion.

Additionally, the following protections were established for secured creditors:

• For securitization and receivables facilities in excess of approximately $2.1 billion and up to $4.0 billion, Frontier will use 40% of securitization issuance to retire first lien debt.
• For those in excess of $4.0 billion and up to the new $5.5 billion cap, Frontier will use 100% of securitization issuance to retire first lien debt.
• Securitization and receivable facilities are limited to Frontier’s assets in Texas and Florida, two of the company’s larger fiber markets.

About Frontier

Frontier (NASDAQ: FYBR) is the largest pure-play fiber provider in the U.S. Driven by our purpose, Building Gigabit America®, we deliver blazing-fast broadband connectivity that unlocks the potential of millions of consumers and businesses. For more information about Frontier, visit us at www.frontier.com. Investors can learn more at investor.frontier.com.