NEW YORK (TheStreet) -- Shares of Frontier Communications (FTR) closed up 1.57% to $5.16 after the company said today that it registered offerings of $750 million of common stock, or 25 cents per share and $1.75 billion of mandatory convertible preferred stock, or 1 cent per share.
The proceeds from the offerings are intended to help fund the $10.54 billion purchase of Verizon Communications (VZ) wireline in February, according to Reuters. These properties are in California, Florida and Texas.
The acquisition is expected to close in the first half of 2016, according to the company.
Separately, Fitch Ratings issued a note today saying that it considers the equity offerings a positive, Barron's reported.
Frontier Communications provides regulated voice, data, and video services to residential, business, and wholesale customers in the U.S.
TheStreet Ratings team rates FRONTIER COMMUNICATIONS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FRONTIER COMMUNICATIONS CORP (FTR) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."