Glendon Capital opposes Frontier Communications’ proposed sale to Verizon

Glendon Capital Management, a private investment firm which is one of the largest shareholders of Frontier Communications Parent (FYBR), owning nearly 10% of the outstanding shares of the company’s common stock, sent a letter to Frontier’s Board of Directors regarding Glendon’s decision to vote against the proposed acquisition of Frontier by Verizon Communications (VZ) at a price of $38.50 per share. In the letter, Glendon expressed its belief that Frontier’s enterprise value is at least $26B today, 30% higher than the current $20B 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.