Frontier Prices Offerings Of $750 Mln Common Stock, $1.75 Bln Preferred Stock

(RTTNews) - Frontier Communications Corp. (FTR) said it has priced its previously announced registered offerings of $750 million of common stock, par value $0.25 per share, at a public offering price of $5 per share, and $1.750 billion of 11.125 percent Mandatory Convertible Preferred Stock, Series A, par value $0.01 per share, at a public offering price of $100 per share. The offerings are expected to close on or about June 10.

Following the offerings, Frontier has granted the underwriters a 30-day option to purchase up to an additional 15 million shares of common stock and up to an additional 1.75 million shares of Mandatory Convertible Preferred Stock, at the public offering price per share.

Frontier intends to use the proceeds from the offerings to finance a portion of the cash consideration payable in connection with the acquisition of the wireline properties of Verizon Communications Inc. in California, Florida and Texas, and to pay related fees and expenses.

The acquisition is expected to close in the first half of 2016. The closings of these offerings are not conditioned on each other or on the closing of the acquisition.