Ropes & Gray Advises Frontier Communications on $750 Million Securitization Offering

Ropes & Gray represented U.S. public telecommunications company Frontier Communications Parent, Inc. in connection with its second securitization of fiber network revenue term notes with a principal amount of $750 million. The term notes are rated by Fitch Ratings Inc., have an anticipated repayment date of 7 years and have a collective weighted average yield of approximately 7.4%.  The transaction priced on June 6.

The notes are secured by certain of Frontier’s fiber network infrastructure assets and associated customer contracts in the Dallas metropolitan and North Texas areas, including broadband internet, phone, video and other services for around 329,000 residential and commercial customers. The transaction includes terms that allow fiber network assets and contracts located in other geographic areas serviced by Frontier to be added to the securitization at a later date to back future issuances of debt under the program.

Collectively, Ropes & Gray has advised Frontier on the offering of nearly $3 billion in financing under its fiber ABS program.

The Ropes & Gray team was led by securitization partner Christopher Poggi, capital markets partner Will Michener, tax partner Eric Behl-Remijan, business restructuring partner Andrew Devore, securitization associate Matthieu Wharmby, and capital markets associate Timothy Machat.