Frontier Communications 10,5 % 2022 US35906AAW80 Eurotlx (1 Viewer)

[dulcamara]

Frontier Communications Corporation is a telecommunications company in the United States. It was known as Citizens Utilities Company until May 2000 and Citizens Communications Company until July 31, 2008. The company previously served primarily rural areas and smaller communities, but now also serves several large metropolitan markets.

Frontier is the fourth largest provider of digital subscriber line (based on coverage area) in the United States. In addition to local and long-distance telephone service, Frontier offers broadband Internet, digital television service, and computer technical support to residential and business customers in 29 states in the United States.

Frontier Communications - Wikipedia

Il sito internet è: High-Speed Internet, Phone & TV | Frontier.com | Frontier

I bonds sono quotati otc. Su www.eurotlx.com è scambiato il bond 2022

Obbligazioni Corporate | EuroTLX

 

[dulcamara]

Is Frontier Communications Corporation a Buy in 2018?

Is Frontier Communications Corporation a Buy in 2018?
Is the troubled telco a value play or a falling knife?
Leo Sun
(TMFSunLion)
Jan 12, 2018 at 10:13AM

Frontier Communications (NASDAQ:FTR) ended 2017 as the worst performing telecom stock of the year, shedding 87% of its market cap against the NASDAQ's 28% gain. The regional telco was so battered that it executed a 1-for-15 reverse stock split last July to prevent its stock from dropping below $1.

Bottom-fishing investors might be wondering if Frontier is now a value stock, since its price-to-sales ratio of 0.06 looks very cheap relative to its peers. Let's examine the bear and bull cases for Frontier to decide.

IMAGE SOURCE: GETTY IMAGES.

The bear case against Frontier
The bears will likely point out that Frontier isn't fundamentally "cheap", since its $17.6 billion in long-term debt significantly inflates its enterprise value (the amount a suitor would pay for the company's assets and debt). Frontier's enterprise value of about $18.1 billion is much higher than its market cap of about $576 million.

Therefore, Frontier's EV/Revenue ratio of 1.9 is a more accurate measure of its value than its price-to-sales ratio. AT&T (NYSE:T) and Verizon (NYSEZ) -- which are in much better shape than Frontier -- have respective EV/Revenue ratios of 2.2 and 2.6.

Meanwhile, Frontier's core business remains in a tailspin due to its shrinking customer base, declining revenues per customer, and high churn rates. Here's how those figures looked last quarter:

Metric

Q3 2016

Q3 2017

YOY change

Total customers

5.55 million

4.95 million

(11%)

Average monthly revenue per customer

$82.34

$80.91

(2%)

Churn rate

2.08%

2.08%

unchanged

SOURCE: FRONTIER COMMUNICATIONS Q3 EARNINGS.

Frontier's biggest problem is its ongoing loss of wireline customers. It expanded that business by acquiring Verizon's wireline properties in California, Texas, and Florida in 2016, but clumsily lost hundreds of thousands of those accounts due to billing problems, service interruptions, customer service disasters, and software failures. Frontier also bought AT&T's Connecticut wireline operations in 2014.

Analysts expect Frontier's revenue to rise 2.5% this year, but drop nearly 6% in fiscal 2018 as it keeps losing subscribers. It's also expected to post net losses over the next two years.

That's why Frontier cut its dividend by 60% last May. However, the stock's subsequent decline inflated its forward yield to 33%. That payout is likely unsustainable, since Frontier needs to conserve its cash and equivalents (at just $286 million last quarter) to pay off the $166 million of its long-term debt which matures within the year.

The bull case for Frontier
Those numbers look disastrous, but some Frontier bulls believe that the company might stop the bleeding with the new partnership with Nokia (NYSE:NOK). The deal, which was announced last May, allows Frontier to roll out "fiber-like speeds" to customers in apartments, bundled with new IPTV and data services, with Nokia's G.fast technology.

G.fast technology lets telcos use the existing copper twisted pair wiring in apartment buildings to deliver higher-speed "fiber-like" connections. Without that technology, Frontier would need to drill holes into each apartment unit to install new fiber connections -- which CTO Steve Gable calls "a time consuming and challenging process that can be frustrating for customers."

However, AT&T, Windstream (NASDAQ:WIN), and CenturyLink are all reportedly deploying their own G.fast connections -- so Frontier's deal with Nokia merely helps it keep pace with its rivals instead of propelling it ahead of the tech curve.

Other bulls believe that Frontier might be saved by a buyout. But that seems increasingly unlikely due to the massive gap between its market cap and enterprise value. Verizon and AT&T wouldn't buy Frontier after selling it their own wireline assets, while regional peers like Windstream currently face too many headwinds to consider big acquisitions.


Should you buy Frontier in 2018?
Frontier is a troubled laggard in a rough industry. Tough competition and cord cutting will throttle its growth for the foreseeable future, while confidence-crushing reverse stock splits and dividend cuts cast a long shadow over its future. Therefore, investors should steer clear of Frontier this year and stick with better-positioned telcos like AT&T and Verizon instead.

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[skarlatti]

Come mai é stato aperto un 3d dedicato a Frontier?

 

[dulcamara]

E' un titolo che mi piacerebbe seguire con maggior attenzione soprattutto ora che è anche quotato su eurotlx

 

[gionmorg]

E' un titolo che mi piacerebbe seguire con maggior attenzione soprattutto ora che è anche quotato su eurotlx

concordo

 

[gionmorg]

Frontier Communications Capital Structure Arbitrage Opportunity - Frontier Communications Corporation (NYSE:FTR) | Seeking Alpha

 

[gionmorg]

Moody's: Frontier's credit facility amendment does not immediately impact ratings or negative outlook

Global Credit Research - 17 Jan 2018
New York, January 17, 2018 -- Moody's Investors Service ("Moodys") said that Frontier Communications Corporation's (Frontier) proposal to amend the terms of its existing credit facilities does not immediately impact its ratings, including its B3 corporate family rating (CFR), its B2 secured rating or its B3 unsecured rating. Frontier's outlook remains negative reflecting its negative subscriber, revenue and EBITDA trends.



The proposed amendment eliminates the total leverage covenant and restriction on junior liens in exchange for a 1.5x first lien incurrence test, an expansion of the credit facility's collateral and other concessions. However, Frontier's ability to incur additional priority debt remains limited by the company's bond indentures to 10% of total assets plus 20% of current assets and net property plant and equipment, a restriction that Moody's estimates allows for an additional $1.3 billion in priority debt. Of this amount, the newly amended credit facility terms limit the first lien additional debt to $800 million.

Moody's believes that this amendment is potentially positive for Frontier's liquidity and may improve its ability to refinance upcoming unsecured note maturities. The increase in collateral and reduction in first lien capacity improves the seniority of the B2 rated first lien creditor class. But, the concurrent decline in asset coverage for the unsecured notes puts downward pressure on Frontier's B3 unsecured rating. The unsecured B3 rating has limited capacity for further subordination, but is likely to accommodate additional priority debt incurred within Frontier's newly proposed first lien incurrence limit so long as Frontier's fundamentals continue to progress toward stabilization and any proceeds are used to refinance near term maturities.

Moody's continues to expect Frontier to address unsecured note maturities in 2018 ($578m) and 2019 ($428) with internally generated cash. Frontier could then be in a position to address its 2020 unsecured maturities ($923m) with a mix of cash and additional secured debt. Moody's anticipates that over this timeframe, Frontier's progress towards stabilizing its subscriber base, revenues and EBITDA will dictate its ability to access the high-yield bond market for maturities beyond 2020. In the absence of an operational turnaround, Moody's thinks it's likely that Frontier will lean more heavily on secured debt and need to seek relief from the above referenced bond indenture restrictions.

Frontier's B3 CFR reflects its large scale of operations, its predictable cash flows and extensive network assets. These factors are offset by Frontier's declining revenues and EBITDA which result from secular decline, competitive pressure and poor execution related to the integration of acquired assets.

The negative outlook reflects the risk that Frontier may not be able to reverse its unfavorable operating trends and that EBITDA could continue to decline. Moody's could stabilize Frontier's outlook if the company's operating performance improves such that broadband subscriber trends and EBITDA are on track to stabilize and the company maintains or improves liquidity.

Moody's believes Frontier will maintain good liquidity over the next twelve months with $286 million of cash on hand at 9/30/2017 and an undrawn $850 million revolver. Moody's expects the company will maintain a modest cushion on its leverage covenant (1.5x first lien net leverage, per proposed amendment) over the next few quarters. (The amendment eliminates the prior leverage covenant of a maximum 5.25x net debt to EBITDA.) A covenant breach could result in a loss of borrowing ability under the revolver, although we do not anticipate Frontier requiring the facility over the next 12 to 18 months.

The ratings for the debt instruments reflect both the probability of default of Frontier, on which Moody's maintains a probability of default rating (PDR) of B3-PD, and individual loss given default assessments. Moody's rates Frontier's secured term loans B2 (LGD3), one notch above the company's B3 CFR due to their enhanced collateral. The secured debt, which consists of $3.6 billion of term loans and the $850 million revolver benefits from a pledge of stock of certain subsidiaries of Frontier which represent approximately 80% of total EBITDA and guarantees from subsidiaries representing approximately 30% of total EBITDA (both amounts as stated by management pro forma for the proposed amendment). Frontier has $850 million of unrated structurally senior debt held at various operating subsidiaries that is senior to the term loan with respect to its pledge of stock. Moody's rates Frontier's unsecured notes B3 (LGD4) in line with the CFR as this $14 billion of debt represents the preponderance of debt in the capital structure.

Moody's could downgrade Frontier's ratings further if the company is unable to transition to approximately stable EBITDA over the next 12 to 18 months, its liquidity deteriorates or its subscriber trends worsen. Moody's could stabilize the outlook if Frontier was on track to achieve stable EBITDA, while maintaining leverage below 6x and good liquidity. Given the company's weak fundamentals ratings upgrade is unlikely at this point.

 

[fabriziof]

io continuerei a parlarne nel 3d hy come si è sempre fatto

 

[gionmorg]

io continuerei a parlarne nel 3d hy come si è sempre fatto

nel 3d hy si parla di frontier ma con riferimento a titoli OTC, questo è quotato su tlx quindi tradabile da tutti o quasi, quindi concordo nel parlarne in un 3d apposito.
Se il 3d non avrà seguito cadrà nel dimenticatoio, altrimenti ben venga una discussione su questo bond.

 

[Luca_niubbo]

io seguo perchè mi interessa: noto che rende veramente molto più di AT&T...