Frontier Communications Holdings LLC is tapping the junk bond market for the first time since emerging from bankruptcy earlier this year, marking a turnaround as the company seeks to fund an ambitious overhaul of its telephone and internet network, Bloomberg News reported. The telecommunications company launched a $1 billion second lien high-yield bond on Monday, with proceeds earmarked to fund capital investments and operating costs from building out its fiber network and customer base, and also for general corporate purposes. The telecommunications company launched a $1 billion second lien high-yield bond on Monday, with proceeds earmarked to fund capital investments and operating costs from building out its fiber network and customer base, and also for general corporate purposes, according to a person with knowledge of the matter. Frontier filed for bankruptcy in April 2020 with a plan to cut more than $10 billion of its $17 billion debt load by handing ownership to bondholders. It was the biggest telecom filing since WorldCom in 2002, reflecting years of decline in its business of providing internet, TV and phone service in 29 states. The company had earlier tapped the bond and loan markets in multiple deals to fund its exit from bankruptcy. All of Frontier’s existing bonds trade above par, according to Trace pricing data. Frontier joins other companies taking advantage of the hot debt markets. American Tire Distributors is offering a loan with a yield of 6.25 percentage points over Libor to refinance debt it used to help finance its 2018 exit from bankruptcy. Meanwhile, Gulf Finance LLC, which operates gas station and petroleum terminals, is raising a new loan that will give the company breathing room, following discussions with lenders.
