Frontier Communications Holdings LLC's $1.025 Billion Senior Secured First-Lien Term Loan B Rated 'B' (Recovery: '2')

NEW YORK (S&P Global Ratings) June 13, 2024--S&P Global Ratings today assigned its 'B' issue-level rating and '2' recovery rating to Frontier Communications Holdings LLC's proposed $1.025 billion senior secured first-lien term loan B due 2031. The '2' recovery rating indicates our expectation for substantial (70%-90%; rounded estimate: 70%) recovery in the event of a payment default. This transaction follows the company's recent announcement that a limited-purpose, bankruptcy-remote, indirect subsidiary priced $750 million of secured fiber network revenue term notes. We expect Frontier will use the proceeds from the asset-based securitization (ABS) issuance and term loan to repay the $1.431 billion outstanding balance on its senior secured first-lien term loan B due 2027 and add $344 million of cash to

...June 13, 2024 NEW YORK (S&P Global Ratings) June 13, 2024--S&P Global Ratings today assigned its 'B' issue-level rating and '2' recovery rating to Frontier Communications Holdings LLC's proposed $1.025 billion senior secured first-lien term loan B due 2031. The '2' recovery rating indicates our expectation for substantial (70%-90%; rounded estimate: 70%) recovery in the event of a payment default. This transaction follows the company's recent announcement that a limited-purpose, bankruptcy-remote, indirect subsidiary priced $750 million of secured fiber network revenue term notes. We expect Frontier will use the proceeds from the asset-based securitization (ABS) issuance and term loan to repay the $1.431 billion outstanding balance on its senior secured first-lien term loan B due 2027 and add $344 million of cash to the balance sheet to fund its fiber buildout plan. We believe that the marginal reduction in value (because of the fiber assets and associated EBITDA being moved into the ABS...

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