Frontier Communications Corporation (NASDAQ:FTR) Files An 8-K Entry into a Material Definitive Agreement
Item1.01
| Entry into a Material Definitive Agreement |
On March29, 2017, Frontier Communications Corporation amended its
credit agreement, dated as of June2, 2014, with CoBank, ACB, as
administrative agent, and the other lenders party thereto, and
its credit agreement, dated as of October12, 2016, with CoBank,
ACB, as administrative agent, and the other lenders party thereto
(the Amendments). The Amendments provide that interest rate
margins under each of these facilities will range from 0.875% to
3.875% for Base Rate borrowings and 1.875% to 4.875% for LIBOR
borrowings, subject to adjustment based on our Total Leverage
Ratio, as defined in each credit agreement. The interest rate on
each of the facilities as of March29, 2017 was LIBOR plus 3.875%.
In addition, the Amendments provide Frontier with more flexible
terms, the most significant of which is a change in the covenants
to increase the maximum Leverage Ratio (as defined in the
Amendments) to 5.25 to 1.0 initially, migrating to 5.0 to 1.0
beginning in the second quarter of 2018, 4.75 to 1.0 in the
second quarter of 2019, and 4.5 to 1.0 in the second quarter of
2020. Under the Amendments, Frontier will be expanding the
security package to include pledges of the equity interests in
certain Frontier subsidiaries and guaranties by certain Frontier
subsidiaries. Such increase in the maximum Leverage Ratio and
expansion of the security package are the same as those contained
in that certain first amended and restated credit agreement,
dated as of February27, 2017, with JPMorgan Chase Bank, N.A., as
administrative agent, and the other lenders party thereto,
previously filed with the Commission as Exhibit 10 under cover of
Form 8-K on February28, 2017.
The foregoing description of the Amendments is qualified in its
entirety by reference to the full text of each Amendment, copies
of which are filed as Exhibit 10.1 and 10.2 to this Report and
incorporated herein by reference.
| Item9.01 | Financial Statements and Exhibits |
| (d) | Exhibits |
| 10.1 |
Fourth Amendment to Credit Agreement, dated as of March29, 2017, among Frontier Communications Corporation, CoBank, ACB, as Administrative Agent, and the lenders and voting participants under the Credit Agreement, dated as of June2, 2014 (as amended, modified, supplemented, extended or restated from time to time). |
|
| 10.2 |
First Amendment to Credit Agreement, dated as of March29, 2017, among Frontier Communications Corporation, CoBank, ACB, as Administrative Agent, and the lenders and voting participants under the Credit Agreement, dated as of October12, 2016 (as amended, modified, supplemented, extended or restated from time to time). |
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About Frontier Communications Corporation (NASDAQ:FTR)
Frontier Communications Corporation (Frontier) offers a range of voice, data, and video services and products. The Company offers a portfolio of communications services for residential and business customers in each of its markets. The Company’s product portfolio includes Internet access, broadband-enabled services, video services and voice services. It offers these services both on a standalone basis and as bundled packages that are designed to simplify customer purchasing decisions. Frontier provides both regulated and unregulated voice, data and video services to residential, business and wholesale customers. It provides data and Internet services; local and long distance wireline voice services to residential and business customers in its service areas; network access to interexchange carriers for origination and termination of long distance voice and data traffic; sales of its own and third-party video services, and sales of customer premise equipment. Frontier Communications Corporation (NASDAQ:FTR) Recent Trading Information
Frontier Communications Corporation (NASDAQ:FTR) closed its last trading session up +0.04 at 2.02 with 59,587,077 shares trading hands.
