Frontier Communications Corp. bonds fell further into junk territory Friday after the telecommunication company announced a reshuffling of its board to include three new directors, including turnaround veteran Mohsin Meghji, WSJ Pro Bankruptcy reported. Frontier’s bonds were among the leading decliners of high-yield issues following the announcement that Mr. Meghji, founder and managing partner of advisory firm M-III Partners LP, was named to the company’s board along with Kevin L. Beebe and Paul M. Keglevic. The yield on Frontier debt rose as prices fell on about $2.2 billion in the company’s 10.5 percent bonds that mature in 2022. Those bonds were trading at 73.5 cents on the dollar midday Friday, and $500 million of the company’s 8.75 percent bonds were trading at 69.5 cents on the dollar. Among the week’s big decliners, $775 million of the company’s 6.875 percent debt was trading at 55 cents on the dollar at midday. Frontier said on Friday in a filing that the new board members will also sit on the company’s finance committee, which is evaluating Frontier’s capital structure and will “consider, evaluate and negotiate capital markets and/or financing transactions and/or strategic alternatives.”
