Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 2 (13 lettori)

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Per chi segue Frontier

FTR plans to release third quarter 2019 results on Tuesday, November 5, 2019, after the market closes, and to host a conference call that afternoon at 4:30 P.M. Eastern Time.
 

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Shizuka Minamoto
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DISTRESSED DAILY: Frontier Gears Up for Debt Payment and Talks
Friday, October 11, 2019 01:00 PM

By Allison McNeely

(Bloomberg) --
The routine act of paying a coupon on time was enough to spark a rally last August in Frontier Communications Corp. bonds. It gets another chance next week when it’s supposed to pay creditors another $60 million in interest, as the company gears up for negotiations around a possible restructuring.

  • The Norwalk, Connecticut-based telecom provider faces an Oct. 15 interest payment deadline across a series of maturities, according to data compiled by Bloomberg.
    • 8.5% notes due April 2020
    • 8.75% notes due April 2022
    • 7.765% notes due April 2024
    • 8.4% notes due October 2029
      • There’s been no indication that Frontier plans to skip any of those payments.
  • Advisers for the company’s creditors have signed non-disclosure agreements so they can access confidential company data and begin negotiations around possible solutions to the company’s $17 billion debt load, according to people with knowledge of the matter.
  • Some of the company’s creditors would like to see a restructuring deal in which Frontier’s $3.6 billion of first-lien and $1.6 billion of second-lien debt get reinstated, and the company’s $11.7 billion of unsecured debt converts to equity, said the people, who asked not to be identified discussing confidential matters.
    • No formal proposals have been submitted to the company, according to one of the people.
  • Moody’s Investors Service downgraded Frontier to Caa2 from Caa1 in August after the company reported a $5.45 billion goodwill impairment in its most recent earnings.
  • Frontier is scheduled to report third-quarter earnings on Nov. 5 and it will not be hosting a question-and-answer session.
  • The company reported $786 million of liquidity and operating free cash flow of $300 million as of June 30.
    • However, it also reported declining revenue driven by customer loss and elevated rates of customer turnover, and it lowered its guidance for the fiscal year.
  • A representative for Frontier declined to comment.
 

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