05:28 PM EDT, 07/01/2024 (MT Newswires) -- Frontier Communications Parent ( FYBR ) said late Monday it has closed its $750 million fiber securitization notes offering.

The company said a subsidiary closed the offering comprising $530 million of 6.2% series 2024-1 class A-2 term notes, $73 million of 7% series 2024-1 class B term notes, and $147 million of 11.2% series 2024-1 class C term notes.

Each of the notes has an expected repayment date in May 2031, Frontier said, adding the notes have a weighted average yield of about 7.4%.

Frontier also said it amended a term loan to, among other things, extend the maturity of about $1.03 billion of commitments to 2031, eliminate the credit spread adjustment and lower the margin over adjusted term secured overnight financing rate to 3.50% from 3.75%, and the margin over the alternative base rate to 2.50% from 2.75%.

Frontier said it plans to use $400 million of proceeds from the notes offering to repay the balance of the term loan commitments due in 2027.

The combined impact of lowering the margins and refinancing $400 million of the loan with lower rate notes will decrease the estimated interest cost on the loan by more than $21.4 million through the original maturity date, the company said.

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