Frontier Communications to Sell $1 Billion Fiber-Backed Bond
- The company is the latest borrower to issue a fiber ABS
- The bond will be used to repay indebtedness, fiber expansion
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Frontier Communications Parent Inc. is sounding out investors regarding a roughly $1 billion bond deal that will repackage revenue from its secured fiber network, the latest in a string of companies trying to capitalize on fiber.
Frontier’s bonds, which will qualify as green, will be backed by some of its fiber assets and associated customer contracts in the Dallas area, the company said in a statement. It will use the proceeds to repay existing debt and for general corporate purposes, including investments as part of its fiber expansion. The company may increase the size the offering, depending on market conditions, it said.