Frontier secures new terms for credit agreements

Frontier Communications announced that it has amended its credit agreements to provide more operational flexibility. The agreements are with JPMorgan Chase Bank and CoBank. 

Among other things, the amendments replace the existing net leverage ratio maintenance test in the credit agreements with a first lien net leverage ratio maintenance test. This provides for a maximum first lien net leverage ratio of 1.50 to 1.00 as of the last day of any fiscal quarter, stepping down to 1.35 to 1.00 for the fiscal quarters ending 30 June 2020 and thereafter.

Frontier said the new agreements provide greater flexibility in executing on operational initiatives going forward and meeting its upcoming note maturities. The amendments also modify the covenants to permit junior liens on any debt permitted to be incurred under the credit agreements, while limiting the incurrence of first lien debt.