Frontier Closes $600 Million Note Offering

STAMFORD, Conn. (AP) — Frontier Communications Corp. said Thursday it has closed the sale of $600 million in senior notes, using the proceeds to help buy back roughly $564 million in other borrowings.

Frontier, which provides telephone and Internet service over 24 states, said the most recent notes were sold at 98.441 percent of face value for net proceeds of $577.6 million. The notes carry a 8.125 percent interest rate.

The company said it has bought back $564 million in 9.25 percent senior notes due in 2011, with $77 million still outstanding. In all, Frontier said it has cut the amount of debt it has coming due in 2011 to $280 million.

Frontier shares fell 14 cents, or 1.9 percent, to $7.40 in afternoon trading.