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    Übersicht der FTR Schulden aus dem 10-Q (Seite 23):

    FTR.jpg

    Cash und cash equivalents sind im gleichen Zeitraum von 354 Mio USD auf 119 Mio USD gesunken. Die Schulden wurden um 245 Mio USD reduziert, gleichzeitig hat FTR aber auch 235 Mio USD an Cash verloren.

    Die annualisierten Zinszahlungen sind von 1,463 Mrd USD auf 1,484 Mrd USD gestiegen.

    Kommentar


    20er Bonds sollen die schaffen, ich überlege den 8,875% 4/15/2020 zu kaufen, der ist kündbar und Restvolumen ist klein so dass eine vorzeitige Kündigung möglich ist.
    In 2021 wird's m.E. kritisch, wenn sie bis dahin keinen Turnaround schaffen ist Chapter 11 unvermeidbar. Auch denke ich nicht, dass sie mit Insolvenzantrag bis zur letzten Minute warten werden, der kann schon in 2021 kommen, spätestens wenn es klar wird, dass 2022 Refinanzierung nicht möglich ist.

    Kommentar


    Zitat von Alf Hier:03.05.2019, 09:13 Beitrag anzeigen
    20er Bonds sollen die schaffen, ich überlege den 8,875% 4/15/2020 zu kaufen, der ist kündbar und Restvolumen ist klein so dass eine vorzeitige Kündigung möglich ist.
    Korrektur: ich meine Frontier Communications Corp. 8,875%, fällig am 15.09.2020 ISIN US35906AAT51, habe gerade zu 95,49% gekauft.

    Kommentar


    Frontier Communications Announces Sale of Operations in Washington, Oregon, Idaho, and Montana

    Kommentar


    Sieh an, es tut sich noch was bei FTR. 1,352 Mrd. USD in cash dürften die Kurzläufer über den Berg bringen, aber meine 27er (ISIN US17453BAS07) ziehen auch schon an ...

    Kommentar


    Ist dies der notwendige Befreiungsschlag für die debtwall und die bonds?

    Kommentar


    Gute Zusammenfassung der Situation und einfaches Prognosemodell zur Zahlung der Schulden bis nach 2022. Ich bleibe mit meinen Kurzläufern drinnen

    20%+ YTM Available To Investors In Frontier Communications Debt $FTR
    https://seekingalpha.com/article/4267135


    Kommentar


    Zitat von dem Hier:30.05.2019, 10:01 Beitrag anzeigen
    Gute Zusammenfassung der Situation und einfaches Prognosemodell zur Zahlung der Schulden bis nach 2022. Ich bleibe mit meinen Kurzläufern drinnen

    20%+ YTM Available To Investors In Frontier Communications Debt $FTR
    https://seekingalpha.com/article/4267135

    Interessant finde ich, falls es tatsächlich zu einer Teiltilung für die 2022er kommt, das sich der Schuldenberg laufzeitmässig immer weiter nach hinten verschiebt. Sicherlich kann man nicht so blauäugig sein, das damit der 2022er Bond safe ist, aber logischerweise sollte das Unternehmen nicht unbedingt Interesse an einer Umstrukturierung haben, wenn die dicken Brocken erst ab 2024 fällig werden.

    Kommentar


    Moody's says Frontier's sale of operations in Washington, Oregon, Idaho, and Montana does not impact rating or stable outlook

    Kommentar


    Frontier Communications Corp

    Valuation

    Our issuer weighting for Frontier Communications is Marketweight. In applying our High Yield methodology (as described in our Disclosures) for the issuer and particular financial instruments, we examined the relevant sectors and markets and considered the following factors, among other: improved credit convexity, forecast modest free cash flow after dividends, anticipated lessening integration sales challenges, forecasted moderating sequential EBITDA declines, relative value, partially offset by forecasted fundamental deterioration, secular pressures, full leverage, and limited liability management options.

    Risks

    Key risks to our Frontier Communications ratings include: dividend reduction or elimination, liability management, higher than expected boost capturing new CAF II customers, overall customer stability, greater than expected margin opportunity, or credit accretive M&A. If the impact on the issuer from any of these factors proves to be greater/less than we anticipate, the issuer/issues performance could deviate from our weightings and ratings.

    Security B Axe Bid Ask A Axe YTM Yday
    Px
    Chg from
    Yday
    Rating Amt
    O/S
    FTR 8½ 20 96.750 - 97.750 11.873 97.13 0.125 Caa1/CCC+ 172mm
    FTR 8⅞ 20 95.000 - 96.250 12.653 95.00 0.625 Caa1/CCC+ 55mm
    FTR 9¼ 21 84.000 - 85.000 18.573 82.75 1.750 Caa1/CCC+ 89mm
    FTR 6¼ 21 75.375 - 75.875 20.068 75.13 0.500 Caa1/CCC+ 220mm
    FTR 8¾ 22 69.750 - 70.125 23.793 68.63 1.313 Caa1/CCC+ 500mm
    FTR 10½ 22 73.000 - 73.625 22.382 72.25 1.063 Caa1/CCC+ 2.18bn
    FTR 7⅛ 23 61.875 - 62.375 23.140 61.88 0.250 Caa1/CCC+ 850mm
    FTR 7⅝ 24 57.875 - 58.875 21.961 59.13 (0.750) Caa1/CCC+ 750mm
    FTR 6⅞ 25 56.625 - 57.500 19.917 57.00 0.063 Caa1/CCC+ 775mm
    FTR 11 25 63.625 - 64.250 21.809 64.13 (0.188) Caa1/CCC+ 3.60bn
    FTR 9 31 59.000 - 59.875 16.974 59.50 (0.063) Caa1/CCC+ 945mm




    Frontier Communications Corp (FTR)

    Eliminating One Near-Term Bearish Concern, Tender Potential
    • What's New

    FTR today announced it has entered into a definitive agreement to sell its operations and all associated assets in Washington, Oregon, Idaho, and Montana to WaveDivision Capital, LLC (WDC) in partnership with Searchlight Capital Partners, LLC (Searchlight) for $1.352 billion in cash subject to certain closing adjustments. LTM sales were $619 million and EBITDA was $272 million. The transaction is expected to close within a year. FTR’s 1stand 2nd lien notes were about flat, front-end notes rose 2-4 points, while FTR’s 10.5% notes due 2022 jumped 4 points, and long-dated bonds traded up 1-2 points post news.
    • Credit Implications

    We expect FTR front-end credit to rally owing to improved liquidity which likely reduces near-term credit event risk. We expect 2nd lien notes to trade about flat, since runway extension could include issuing additional 2nd lien notes, but possible tender could lessen near-term 2nd lien issuance risk. We think the 10.5% notes due 2022 could rally on potential debt tender prospects ($2,188 million times 0.75 = $1,641 million). We expect FTR 2023-2046 credit to rally modestly owing to runway extension.
    • Citi’s Take

    The market has recently embraced concerns that FTR could either elect “early Chapter 11” (meaning give-up before major maturity walls in 2022) or be forced to file Chapter 11 early owing to liquidity challenges (market debates about revolver availability). We estimate near $0 taxes, about $0.2 billion required for loan repayment (per asset sale requirements, about $1.2 billion senior notes and equity, and about $0.8 billion RP capacity. Even though FTR could use $0.8 billion for equity distributions, we expect about $1.2 billion to used retire and perhaps tender for senior notes. See note for details.
    • Catalysts

    Debt tender. Asset sales. Sales trend changes. Permanent CFO. Improved or worsened sales trends in consumer or commercial. Margin maintenance. Subscriber adds or losses. Liability management. Possible asset sales. Potential management changes.



    We maintain our Marketweight on FTR credit owing to credit convexity, forecast moderate free cash flow, anticipated sales challenges, forecasted moderating sequential EBITDA declines, relative value, partially offset by forecasted fundamental deterioration, secular pressures, full leverage, and potential future liability management option.

    We maintain our Buy rating on FTR’s 8% 1st lien notes due 2027 owing to attractive yield, adequate liquidity, comfortable asset coverage. In a bankruptcy scenario, we would expect these notes to trade near par and receive current interest. Within FTR’s capital structure, we think these notes have the attractive total return potential should bankruptcy occur near-term. We continue to rate FTR’s 1st lien term loans and 2nd lien notes Buy for similar reasons.

    We maintain our Buy rating on FTR’s senior notes due 2023-2046. We believe these notes are notes trade near recovery value and think coupon payments either add to or create total return. Our Buy rating does not require price appreciation, although we would not be surprised to see a relief rally once the company repays its $404 million 7.125% senior notes on March 15, 2019. We maintain our Neutral rating on FTR’s senior notes due 2020-2022 owing to trading levels above recovery value and relative value.

    Transaction Considerations

    Transaction Summary — FTR sold the assets for 5.0x EBITDA ($1,352 million divided by $272 million EBITDA) which is modestly deleveraging for 4.9x leveraged FTR. We expect NOLs to absorb any taxable gains and so expect FTR to receive about $1,352 million when the sale closes. We expect the transaction to close in 6-9 months and think management’s guidance of 1-year is conservative.

    Taxes — FTR has $2.4 billion NOLs (at December 31, 2018) which we would expect to shield any taxable basis. Therefore, we expect FTR to receive near $1,352 million in sale proceeds.

    Asset Sale Test Restrictions — FTR spends about $1.2 billion in capex annually and so will be able to “shield” about $1.2 billion of the $1.4 billion proceeds from asset sale pay down on loans. Therefore, we estimate about $0.2 billion could be required for loan repayment and $1.2 billion remaining for other purposes.

    Restricted Payment Capacity — The RP capacity at December 31, 2018 was $5,409 million (per 1st lien note prospectus); however, this is limited by debt incurrence capacity. Debt incurrence is limited to 4.5x total leverage plus baskets which include $800 million carve-out. Therefore, we estimate FTR has $800 million RP capacity, which is used ($800 million to equity), then about $400 million will be available for senior notes. The market has recently debated FTR’s ability to incur revolving credit debt, which if true would lower the amount available from our assumed $800 million amount.

    Will FTR Use RP Capacity? We would not expect FTR to use any of its RP capacity, since the stock has no dividend (so it does not save cash costs).

    What Could FTR Use the $1.2 Billion For? FTR could address one of its highest coupons and a concerning maturity wall by tendering for its $2,188 million 10.5% notes due September 15, 2022. Assuming a tender price of 75, the entire issue could be tendered for $1,641 million. The $1.2 billion could tender $1.6 billion about 73% of the entire issue assuming a 75 tender price.

    Kommentar


    Frontier names directors to finance committee; bonds dip

    Jun. 7, 2019 10:23 AM ET|About: Frontier Communications Co... (FTR)|By: Jason Aycock, SA News Editor

    Along with naming Sheldon Bruha to the job of permanent chief financial officer, Frontier Communications (FTR -5.1%) named three new directors to its board.

    Kevin Beebe, Paul Keglevic and Mohsin Meghji join the board effective immediately, and will serve as independent directors on the finance committee, charged with evaluating the company's capital structure.

    They bring expertise in strategic advice: Beebe is CEO of 2BPartners, an adviser to telecoms, while Meghi founded M-III Partners, an adviser focused on turnarounds and special situations.

    The company's bonds are now leading declines in the high-yield market, Bloomberg notes, with its 2025 11% notes now yielding nearly 22%.

    Along with those moves, Michael McDonnell has resigned from the board due to competing time commitments and Howard Schrott has resigned from the board due to personal considerations.

    That leaves the board at nine directors, eight of them independent.

    Folgender Kommentar trifft es eigentlich ganz passend:
    b_f_well Comments361 | + Follow

    The fact that they were doing an extensive search for a CFO with experience with highly leveraged assets and ended up with the same guy they have now who very poorly communicated the strategy in the last call is not a good sign imo. Especially when the former CFO said he was leaving due to family matters and got a new CFO job 1 month later. I used to be long but this situation stinks. Good luck to all.

    07 Jun 2019, 11:04 AM

    Kommentar


    Fitch Downgrades Frontier Communications to 'B-'; Outlook Stable

    Kommentar


    Frontier Creditors Prod Telecom to Overhaul Its Debt

    Kommentar


    Hat jemand vielleicht eine Liste von besicherten Anleihen, die auch bei IB oder in DE handelbar sind? Ich habe auf dem Zettel nur GTE Southwest US362338AQ80 (8,5% bis 15.11.2031), die ist m.E. sicher auch wenn FTR Ch11 anmeldet, ist mir aber noch zu teuer.

    Kommentar


    Die für mich wesentliche Information des Artikels ist, dass es eine Investorengruppe gibt, die über 60% der 2022 und 2025 unbesicherten Anleihen halten. Diese sind damit gut aufgestellt, um das Beste für diese Anleihen herauszuholen. Das halte ich letztlich für eine gute Nachricht, auch dass Gespräche laufen.
    (Anmerkung: Ich habe die 11% 2025 Anleihe schon lange, die jetzt aber tief unter dem Einkaufpreis steht.)

    Kommentar

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