Will Vote Against Verizon Transaction at
Current Price as it Significantly Undervalues Frontier's Assets
and Earnings Trajectory
Frontier's Board Relied on Fundamentally
Flawed DCF and Peer Analysis
Believes Frontier's Enterprise Value is at
Least $26 Billion, 30% Higher than
the Current $20 Billion Enterprise
Value Ascribed from the Verizon Transaction
Urges Extension of Record Date and Date of
Special Meeting of Stockholders
LOS
ANGELES, Oct. 23, 2024 /PRNewswire/ -- Glendon
Capital Management LP ("Glendon"), a private investment firm which
is one of the largest shareholders of Frontier Communications
Parent, Inc. ("Frontier" or the "Company") (NASDAQ: FYBR), owning
nearly 10% of the outstanding shares of the Company's common stock,
today sent a letter to Frontier's Board of Directors (the "Board")
regarding Glendon's decision to vote against the proposed
acquisition of Frontier by Verizon Communications Inc. ("Verizon")
at a price of $38.50 per share (the
"Verizon Transaction").
In the letter, Glendon expressed its belief that Frontier's
enterprise value is at least $26
billion today, 30% higher than the current $20 billion enterprise value ascribed from the
Verizon Transaction, based on an analysis of the most recent and
relevant comparable transactions as well as Frontier's expected
future cash flows.
Additionally, Glendon expressed its disappointment with the
Board's illogical and rushed setting of the record date and special
meeting of stockholders, and urged an extension of both dates to
enable shareholders to fully understand the standalone case for
Frontier.
The full text of the letter can be accessed by clicking the
following link: Letter to Frontier's Board.
Disclaimers
THIS IS NOT A SOLICITATION OF AUTHORITY TO VOTE YOUR PROXY. DO
NOT SEND US YOUR PROXY CARD. GLENDON CAPITAL MANAGEMENT IS NOT
ASKING FOR YOUR PROXY CARD AND WILL NOT ACCEPT PROXY CARDS IF SENT.
GLENDON CAPITAL MANAGEMENT IS NOT ABLE TO VOTE YOUR PROXY, NOR DOES
THIS COMMUNICATION CONTEMPLATE SUCH AN EVENT.
This letter does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities described
herein in any state to any person. This letter does not recommend
the purchase or sale of a security. There is no assurance or
guarantee with respect to the prices at which any securities of
Frontier Communications Parent, Inc. (the "Company") will trade,
and such securities may not trade at prices that may be implied
herein. In addition, this letter and the discussions and opinions
herein are for general information only, and are not intended to
provide financial, legal or investment advice. Each shareholder of
the Company should independently evaluate the proxy materials and
make a decision that aligns with their own financial interests,
consulting with their own advisers, as necessary.
This letter contains forward-looking statements. Forward-looking
statements are statements that are not historical facts and may
include projections and estimates and their underlying assumptions,
statements regarding plans, objectives, intentions and expectations
with respect to future financial results, events, operations,
services, product development and potential, and statements
regarding future performance. Forward-looking statements are
generally identified by the words "expects", "anticipates",
"believes", "intends", "estimates", "plans", "will be" and similar
expressions. Although Glendon Capital ("Glendon ") believes that
the expectations reflected in forward-looking statements contained
herein are reasonable, investors are cautioned that forward-looking
information and statements are subject to various risks and
uncertainties—many of which are difficult to predict and are
generally beyond the control of Glendon or the Company—that could
cause actual results and developments to differ materially from
those expressed in, or implied or projected by, the forward-looking
information and statements. In addition, the foregoing
considerations and any other publicly stated risks and
uncertainties should be read in conjunction with the risks and
cautionary statements discussed or identified in the Company's
public filings with the U.S. Securities and Exchange Commission,
including those listed under "Risk Factors" in the Company's annual
reports on Form 10-K and quarterly reports on Form 10-Q and those
related to the Pending Transaction (as defined below). The
forward-looking statements speak only as of the date hereof and,
other than as required by applicable law, Glendon does not
undertake any obligation to update or revise any forward-looking
information or statements. Certain information included in this
press release is based on data obtained from sources considered to
be reliable. Any analyses provided herein is intended to assist the
reader in evaluating the matters described herein and may be based
on subjective assessments and assumptions and may use one among
alternative methodologies that produce different results.
Accordingly, any analyses should not be viewed as factual and
should not be relied upon as an accurate prediction of future
results. All figures are estimates and, unless required by law, are
subject to revision without notice.
Glendon's fund currently beneficially owns shares of the
Company. This fund is in the business of trading (i.e., buying and
selling) securities and intends to continue trading in the
securities of the Company. You should assume this fund will from
time to time sell all or a portion of its holdings of the Company
in open market transactions or otherwise, buy additional shares (in
open market or privately negotiated transactions or otherwise), or
trade in options, puts, calls, swaps or other derivative
instruments relating to such shares. Consequently, Glendon's
beneficial ownership of shares of, and/or economic interest in, the
Company may vary over time depending on various factors, with or
without regard to Glendon's views of the pending transaction
involving the Company and Verizon Communications (the "Pending
Transaction") or the Company's business, prospects, or valuation
(including the market price of the Company's shares), including,
without limitation, other investment opportunities available to
Glendon, concentration of positions in the portfolios managed by
Glendon, conditions in the securities markets, and general economic
and industry conditions. Without limiting the generality of the
foregoing, in the event of a change in the Company's share price on
or following the date hereof, Glendon's funds may buy additional
shares or sell all or a portion of its holdings of the Company
(including, in each case, by trading in options, puts, calls,
swaps, or other derivative instruments relating to the Company's
shares). Glendon also reserves the right to change the opinions
expressed herein and its intentions with respect to its investment
in the Company, and to take any actions with respect to its
investment in the Company as it may deem appropriate, and disclaims
any obligation to notify the market or any other party of any such
changes or actions, except as required by law.
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content:https://www.prnewswire.com/news-releases/glendon-capital-management-sends-letter-to-frontier-communications-board-of-directors-opposing-sale-to-verizon-for-38-50-per-share-302284493.html
SOURCE Glendon Capital Management LP