Frontier says Verizon unit closes $3.2 billion debt offering for landline sale

Verizon unit closes $3.2B debt offering

STAMFORD, Conn. — Frontier Communications Corp. said Monday that a Verizon Communications Inc. subsidiary formed as part of its sale of landline operations in 14 states has completed its $3.2 billion debt offering.

The notes from the subsidiary, New Communications Holdings Inc., included $500 million due in 2015 paying 7.875 percent, $1.1 billion due in 2017 paying 8.25 percent, $1.1 billion due in 2020 paying 8.5 percent, and $500 million due in 2022 paying 8.75 percent.

Proceeds from the offering were deposited into an escrow account and will be used to pay Verizon as part of the sale of the landlines to Frontier.

The sale is expected to close late in the second quarter.

Shares of Frontier slid 3 cents to $7.42 in afternoon trading.

Shares of Verizon slid 15 cents to $29.93.