Frontier Communications to Sell $2.8B of Junk Bonds as Part of Bankruptcy Exit
Investors Who Were Sold Telecommunication Company’s Bonds Grapple with Losses
In its second sale in two months, Frontier Communications Corp. wants to sell $2.8B in junk bonds to help pay for its exit from bankruptcy.
According to sources that spoke with Bloomberg, this includes new $1.8B first-lien bonds at an about 5.25% yield and another $1B of second-lien notes at a 7 – 7.25% yield. The new bonds, along with an increase to an existing term loan, are meant to allow Frontier to pay back debt it owes that will mature in 2024 and 2026.