Exhibit 99.1
Frontier Communications
3 High Ridge Park
Stamford, CT 06905
203.614.5600
www.frontier.com
Contact:
David Whitehouse
203-614-5708
Frontier Communications Corporation Prices
Offering of $600 Million of Its Senior Notes
STAMFORD, Conn., Sept. 17, 2009 -- Frontier Communications Corporation
(NYSE: FTR) announced today that it has priced a registered offering of $600
million aggregate principal amount of 8.125% Senior Notes due 2018. The issue
price is 98.441% of the principal amount of the notes. Frontier will receive net
proceeds of approximately $577.6 million from the offering after deducting
underwriting discounts and estimated offering expenses. Frontier intends to use
the net proceeds of the offering, together with cash on hand, to finance a cash
tender offer announced today for up to $700 million to purchase its outstanding
9.250% Senior Notes due 2011 and its outstanding 6.250% Senior Notes due 2013.
The offering is expected to close on October 1, 2009.
The joint book-running managers for the offering are Credit Suisse
Securities (USA) LLC, Citigroup Global Markets Inc. and J.P. Morgan Securities
Inc. You may obtain a final prospectus supplement, when available, and
prospectus by contacting Credit Suisse Securities (USA) LLC at (800) 820-1653
(toll free) or (212) 538-1862 (collect).
This announcement does not constitute an offer to sell or the solicitation
of an offer to buy the notes, nor shall there be any sale of the notes in any
state in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such state. A
registration statement relating to the notes became effective on April 3, 2009,
and the offering is being made by means of a prospectus supplement.
Forward-Looking Language
This press release contains forward-looking statements that are made
pursuant to the safe harbor provisions of The Private Securities Litigation
Reform Act of 1995. These statements are made on the basis of management's views
and assumptions regarding future events and business performance. Words such as
"believe," "anticipate," "expect" and similar expressions are intended to
identify forward-looking statements. Forward-looking statements (including oral
representations) involve risks and uncertainties that may cause actual results
to differ materially from any future results, performance or achievements
expressed or implied by such statements. These risks and uncertainties are based
on a number of factors, including but not limited to: Our ability to complete
the acquisition of access lines from Verizon; the failure to obtain, delays in
obtaining or adverse conditions contained in any required regulatory approvals
for the Verizon transaction; the failure to receive the IRS ruling approving the
tax-free status of the Verizon transaction; the failure of our stockholders to
approve the Verizon transaction; the ability to successfully integrate the
Verizon operations into Frontier's existing operations; the effects of increased
expenses due to activities related to the Verizon transaction; the ability to
migrate Verizon's West Virginia operations from Verizon owned and operated
systems and processes to Frontier owned and operated systems and processes
successfully; the risk that the growth opportunities and cost synergies from the
Verizon transaction may not be fully realized or may take longer to realize than
expected; the sufficiency of the assets to be acquired from Verizon to enable us
to operate the acquired business; disruption from the Verizon transaction making
it more difficult to maintain relationships with customers, employees or
suppliers; the effects of greater than anticipated competition requiring new
pricing, marketing strategies or new product or service offerings and the risk
that we will not respond on a timely or profitable basis; reductions in the
number of our access lines and High-Speed Internet subscribers; our ability to
sell enhanced and data services in order to offset ongoing declines in revenue
from local services, switched access services and subsidies; the effects of
ongoing changes in the regulation of the communications industry as a result of
federal and state legislation and regulation; the effects of competition from
cable, wireless and other wireline carriers (through voice over internet
protocol (VOIP) or otherwise); our ability to adjust successfully to changes in
the communications industry and to implement strategies for improving growth;
adverse changes in the credit markets or in the ratings given to our debt
securities by nationally accredited ratings organizations, which could limit or
restrict the availability, or increase the cost, of financing; reductions in
switched access revenues as a result of regulation, competition and/or
technology substitutions; the effects of changes in both general and local
economic conditions on the markets we serve, which can impact demand for our
products and services, customer purchasing decisions, collectability of revenue
and required levels of capital expenditures related to new construction of
residences and businesses; our ability to effectively manage service quality;
our ability to successfully introduce new product offerings, including our
ability to offer bundled service packages on terms that are both profitable to
us and attractive to our customers; changes in accounting policies or practices
adopted voluntarily or as required by generally accepted accounting principles
or regulators; our ability to effectively manage our operations, operating
expenses and capital expenditures, to pay dividends and to repay, reduce or
refinance our debt; the effects of bankruptcies and home foreclosures, which
could result in increased bad debts; the effects of technological changes and
competition on our capital expenditures and product and service offerings,
including the lack of assurance that our ongoing network improvements will be
sufficient to meet or exceed the capabilities and quality of competing networks;
the effects of increased medical, retiree and pension expenses and related
funding requirements; changes in income tax rates, tax laws, regulations or
rulings, and/or federal or state tax assessments; the effects of state
regulatory cash management policies on our ability to transfer cash among our
subsidiaries and to the parent company; our ability to successfully renegotiate
union contracts expiring in 2009 and thereafter; declines in the value of our
pension plan assets, which could require us to make contributions to the pension
plan beginning no earlier than 2010; the effects of any unfavorable outcome with
respect to any of our current or future legal, governmental or regulatory
proceedings, audits or disputes; the possible impact of adverse changes in
political or other external factors over which we have no control; and the
effects of hurricanes, ice storms or other severe weather. These and other
uncertainties related to our business are described in greater detail in our
filings with the Securities and Exchange Commission, including our reports on
Forms 10-K and 10-Q, and the foregoing information should be read in conjunction
with these filings. We do not intend to update or revise these forward-looking
statements to reflect the occurrence of future events or circumstances.
Source: Frontier Communications Corporation
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