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Obbligazioni societarieHIGH YIELD e oltre, verso frontiere inesplorate - Vol. 2
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.
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.
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.