Bulletin: Frontier Communications Holdings LLC Fiber Securitization Offering, Variable Funding Notes Commitment Improve Liquidity

This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Aug. 7, 2023--S&P Global Ratings today said that its issue-level and recovery ratings on Frontier Communications Holdings LLC 's (B-/Stable/--) first-lien and second-lien debt are unchanged following the company's announcement that a limited-purpose, bankruptcy-remote, indirect subsidiary of Frontier priced $1.586 billion of secured fiber network revenue term notes. In connection with the offering, Frontier also entered into a commitment for a $500 million variable funding note facility with a delayed-draw feature. Although the incremental debt and reduction in value available to first-lien lenders following the asset-based securitization (ABS) transaction modestly lowers the rounded recovery estimate to 70% from 75%, the new issuance does not affect the ?B?

...August 7, 2023 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Aug. 7, 2023--S&P Global Ratings today said that its issue-level and recovery ratings on Frontier Communications Holdings LLC's (B-/Stable/--) first-lien and second-lien debt are unchanged following the company's announcement that a limited- purpose, bankruptcy-remote, indirect subsidiary of Frontier priced $1.586 billion of secured fiber network revenue term notes. In connection with the offering, Frontier also entered into a commitment for a $500 million variable funding note facility with a delayed-draw feature. Although the incremental debt and reduction in value available to first-lien lenders following the asset-based securitization (ABS) transaction modestly lowers the rounded recovery estimate to 70% from 75%, the new issuance does not affect the `B' issue-level rating and `2' recovery rating. Furthermore, there is no change to the 10% rounded recovery estimate for the second- lien debt,...

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