Stricken Frontier defers interest payments as bondholder discussions continue

17 Mar 2020

Cash-strapped US telco Frontier Communications has announced that it has elected to defer making the interest payments on certain of its senior unsecured notes and enter a 60-day grace period as it continues discussions with its bondholders to work towards a comprehensive resolution. The payments were due on 16 March 2020.

In a statement on its investor relations site the telco confirms: ‘We remain actively engaged in constructive discussions with our bondholders as the company continues to evaluate its capital structure with an eye to reducing debt and interest expense … Importantly, we continue to provide quality service to our customers without interruption and work with our business partners as usual.’

Bloomberg had previously reported that Frontier was due to meet USD356 million of interest payments by the middle of this month. Frontier’s total debt pile is said to be in the region of USD17.5 billion and the anticipated bankruptcy process is expected to result in the biggest US telecoms debt load restructuring in nearly two decades.

United States, Frontier Communications