Exhibit 99.1
Frontier Communications
3 High Ridge Park
Stamford, CT 06905
203.614.5600
www.frontier.com
FOR IMMEDIATE RELEASE
California, Nevada and South Carolina Approve Frontier's
Acquisition of Verizon Wireline Operations in those States
STAMFORD, Conn., October 29, 2009 - Frontier Communications Corporation (NYSE:
FTR) announced today that its pending acquisition of Verizon Communications'
local wireline operations has received approvals from the California Public
Utilities Commission, the Public Utilities Commission of Nevada, and the Public
Service Commission of South Carolina. The transaction, announced May 13, 2009,
includes Verizon's local exchange businesses in 14 states, including parts of
California, and certain customer relationships for long distance services,
broadband Internet access and broadband video.
This week, on October 27, 2009, Frontier's stockholders voted overwhelmingly to
approve the merger agreement and related proposals.
Frontier has also received approvals from 10 of the 41 FiOS video franchise
communities the company will serve in Washington state and Oregon. On September
1, 2009, the transaction received early termination of the waiting period
required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
In addition to the remaining local franchise approvals and the approvals of six
other states, the Federal Communications Commission (FCC) must approve certain
license transfers as well. The FCC review is in process.
"We are very pleased with obtaining these key approvals," said Maggie
Wilderotter, Chairman and CEO of Frontier Communications. "Upon receipt of the
remaining approvals necessary for closing the transaction, Frontier will be
ready to deliver terrific products and services to our new customers. The new
Frontier will have a strong balance sheet enabling us to upgrade broadband in
many of these communities and to deliver an excellent customer experience.
Financially, the transaction will result in lower leverage, operating
flexibility, and greater cash flow generation, all of which should enable
Frontier to achieve an investment grade credit rating," she added.
After the transaction, Frontier will have approximately 7 million access lines
in 27 states, 8.6 million voice and broadband connections, and approximately
16,000 employees, based on data as of December 31, 2008. The transaction is
still expected to close during the second quarter of 2010.
About Frontier Communications
Frontier Communications Corporation (NYSE: FTR) is a full-service communications
provider and one of the largest local exchange telephone companies in the
country serving rural areas and small and medium-sized towns and cities.
Frontier is included in the S&P 500 Index. Frontier Communications offers
telephone, television and Internet services, including wireless Internet data
access, as well as bundled offerings, specialized bundles for small businesses
and home offices, and data security solutions. Additional information about
Frontier is available at www.frontier.com.
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 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; our ability to pay dividends in respect of
our common shares, which may be affected by our cash flow from operations,
amount of capital expenditures, debt service requirements, cash paid for income
taxes and our liquidity; 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.
Additional Information and Where to Find It
This filing is not a substitute for the definitive prospectus/proxy statement
included in the Registration Statement on Form S-4 that Frontier filed, and the
SEC has declared effective, in connection with the proposed transactions
described in the definitive prospectus/proxy statement. INVESTORS ARE URGED TO
READ THE DEFINITIVE PROSPECTUS/PROXY STATEMENT BECAUSE IT CONTAINS IMPORTANT
INFORMATION, INCLUDING DETAILED RISK FACTORS. The definitive prospectus/proxy
statement and other documents filed or to be filed by Frontier with the SEC are
or will be available free of charge at the SEC's website, www.sec.gov, or by
directing a request when such a filing is made to Frontier, 3 High Ridge Park,
Stamford, CT 06905-1390, Attention: Investor Relations.
This communication shall not constitute an offer to sell or the solicitation of
an offer to buy securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of such jurisdiction.
Frontier's stockholders approved the proposed transactions on October 27, 2009,
and no other vote of the stockholders of Frontier or Verizon is required in
connection with the proposed transactions.
INVESTOR CONTACTS: MEDIA CONTACT:
- ---------------------------------------- ---------------------------------- ----------------------------------
David Whitehouse Gregory Lundberg Brigid Smith
SVP & Treasurer Director, Investor Relations AVP , Communications
(203) 614-5708 (203) 614-5044 (203) 614-5042
david.whitehouse@frontiercorp.com greg.lundberg@frontiercorp.com brigid.smith@frontiercorp.com
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