Frontier Communications is working with advisers to sell selected regional assets in an effort to raise new funds, Bloomberg reports, citing people with knowledge of the matter. Specifically, the company is considering the sale of wireline assets in California, Florida and Texas that it acquired from Verizon Communications less than two years ago. The assets are likely to be sold in parts rather than as a single package, one of the sources indicated. According to the news agency, Frontier is currently struggling under USD18 billion of debt, and recently won a reprieve from its lenders that will allow it to borrow more money and refinance part of its debt.
According to TeleGeography’s GlobalComms Database, Frontier closed its USD10.5 billion acquisition of Verizon Communications’ wireline operations in California, Texas and Florida in April 2016. The acquired businesses included approximately 3.3 million voice connections, 2.1 million broadband connections, and 1.2 million IPTV subscribers, as well as the related incumbent local exchange carrier (ILEC) businesses.