Frontier Completes $750 Million Fiber Securitization Offering and Term Loan Refinancing

Securitization to further fund Building Gigabit America

Transactions refinance debt at a lower cost of capital and proactively extend maturities

Frontier Communications Parent, Inc. (NASDAQ: FYBR) (“Frontier” or the “Company”) today announced the closing of its previously announced fiber securitization notes offering. This transaction is the Company’s second fiber securitization and again demonstrates the long-term value of Frontier’s fiber assets and the Company’s ability to flexibly access investment grade capital.

“The completion of our second securitization offering in less than a year highlights the value of Frontier’s fiber network and the attractiveness of fiber as critical digital infrastructure,” said Scott Beasley, Chief Financial Officer of Frontier. “These transactions are a cost-efficient way to fund our fiber strategy and Build Gigabit America, while also providing flexibility to refinance higher-cost debt, extend our term loan and lower our overall cost of capital.”

Summary of Transactions

A limited-purpose, bankruptcy remote, indirect subsidiary of the Company closed an offering of $750 million aggregate principal amount of secured fiber network revenue term notes, consisting of $530 million 6.2% Series 2024-1, Class A-2 term notes, $73 million 7.0% Series 2024-1, Class B term notes and $147 million 11.2% Series 2024-1, Class C term notes, each with an anticipated repayment date in May 2031 (collectively, the “Notes”). Collectively, the Notes have a weighted average yield of approximately 7.4%.

The Notes are secured by certain of Frontier’s fiber assets and associated customer contracts in North Texas and qualify as green bonds.

In addition, the Company announced the closing of an amendment to its senior secured term loan facility with JPMorgan Chase Bank, N.A., as administrative agent. This amendment, among other things, extends the maturity of $1.025 billion of commitments to 2031, eliminates the credit spread adjustment and lowers the margin over adjusted Term SOFR from 3.75% to 3.50% and the margin over the alternative base rate from 2.75% to 2.50%. The Company intends to use $400 million of proceeds from the Notes offering to repay the balance of the existing term loan commitments currently due in 2027. The combined impact of lowering the margin and refinancing $400 million of the term loan with lower rate Notes reduces estimated aggregate interest cost on the existing term loan by over $21.4 million through the original maturity date.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, the Notes or any other securities, and shall not constitute an offer to sell, solicitation of an offer to buy, or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

For the securitization offering, Goldman Sachs & Co. LLC acted as lead structuring advisor and lead left bookrunner. Barclays Capital Inc. acted as joint structuring agent and joint active bookrunner. Citizens JMP Securities, LLC, Deutsche Bank Securities Inc., Fifth Third Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and TD Securities (USA) LLC acted as passive bookrunners. Ropes & Gray LLP served as counsel to Frontier, and King & Spalding LLP served as counsel to the initial purchasers in the offering.

Forward-Looking Statements

This release contains “forward-looking statements” related to future events. Forward-looking statements address the Company’s expectations or beliefs concerning future events, including, without limitation, the expected use of proceeds from the sale of the Notes, any future securitization opportunities, the long-term value of the Company’s fiber assets, the Company’s ability to raise funds for its fiber build and other matters. These statements are based on management’s views and assumptions, as of the date of this release, regarding future events and performance. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. A wide range of factors could materially affect future developments and performance, including but not limited to, uncertainties related to market conditions and other factors set forth in the Company’s other filings with the U.S. Securities and Exchange Commission (the “SEC”). This list of factors that may affect future performance and the accuracy of forward-looking statements is illustrative and is not intended to be exhaustive. You should consider these important factors, as well as the risks and other factors contained in the Company’s filings with the SEC, including the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q and subsequent SEC filings. The Company does not intend, nor does it undertake any duty, to update any forward-looking statements, except as required by law.

About Frontier

Frontier (NASDAQ: FYBR) is the largest pure-play fiber provider in the U.S. Driven by our purpose, Building Gigabit America®, we deliver blazing-fast broadband connectivity that unlocks the potential of millions of consumers and businesses.

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