EFTA02479829.pdf

From: Barrett, Paul S Sent: Monday, November 16, 2015 3:04 PM To: Brad Wechsler Cc: Matusow, Jeffrey M; Barrett Team; Nelson, Justin D; Jeffrey Epstein ([email protected]) Subject: Frontier bonds with some leverage Brad The Frontier bonds a=e now offered at 100.50. Lending value is 65%. So if we buy these in the ma=gin account you end up with a 21% leveraged yield. Would recommend $1-$=MM. &=bsp; FTR 8=34 04/15/20 (35906AAH1) Issuer:&=bsp; = FR=NTIER COMMUNICATIONS Ticker:&=bsp; = FTR Ratings:=nbsp; &nbs=; Ba3/BB-/BB Ranking:=nbsp; &nbs=; Sr Unsecured Coupon:&=bsp; = 8.50=/span> Maturity= &nb=p; 04/15/20 Price:&n=sp; =nbsp; &nb=p;100.50 YTW:&nbs=; &n=sp; = 8.35% YTM:&nbs=; &n=sp; =nbsp; 8.35% OAS Mod=0uration: 3.58 Cusip:&n=sp; =nbsp; 35906AAH= Company Descri=tion: EFTA_R1_01595639 EFTA02479829 Frontier Communicati=ns Corp. (FTR) is the largest pure rural telecom company in the U.S. focuse= on providing services to small and medium-sized cities. Frontier's s=rvices include voice, high-speed internet, satellite video (through agreements with DISH), wireless internet data acce=s, data security solutions, bundled offerings, specialized bundles for smal= businesses and home offices. In February of 2015, FTR announced the=acquisition of Verizon FiOS assets in Texas, Florida and California. In September 11, Frontier priced $6.6bn o= unsecured notes, consisting of $1bn of 8.875% notes due 9/2020, $2bn of 10=5% notes due 9/2022 and 3.6bn of 11% notes due 9/2025. The unsecured issuan=e followed prior completion of the secured debt ($1.5bn of term loan A) and equity ($2.75bn common and=preferred) components, and therefore completes the financing of the Verizon=transaction. Prior to the FiOS transaction, FTR completed the acquisition o= AT&T wireline operations in Connecticut for $2Bb in cash. <=pan style="font-size:8.Opt;font-family:"Verdana","sans- ser=f";color:#SFSFSF"> <=pan style="font-size:8.0pt;font-family:"Verdana","sans-ser=f"">Paul Barrett I Managing Director I Global Investment Opportunities Group I J.P. Morgan Securities LLC I J.P. Morgan Private Bank I =J.P. Morgan Chase Bank N.A. 320 Park Avenue, 14th Floor, New York, NY 10022 I T: NOT AN OFFICIAL CONFIRMATION: For informational purposes only.=nbsp; This report does not represent an official account of the holdings, b=lances, or transactions made in your account and is being provided at your=request. Please refer to your monthly account statement for the official record of all of your account activities= For question, please call your J.P. Morgan representative.</=:p> In discussion of options and other strategies, results and risks ar= based solely on hypothetical examples cited; actual results and risks will=vary depending on specific circumstances. Investors are urged to consider carefully whether option or option-related=products in general, as well as the products or strategies discussed herein=are suitable to their needs. In actual transactions, the client's cou=terparty for OTC derivatives applications is JPMorgan Chase Bank, N.A., and affiliates. For a copy of the "Char=cteristics and Risks of Standardized Options" booklet, please contact=your JPMorgan Advisor. This e=ail is confidential and subject to important disclaimers and conditions inc=uding on offers for the purchase or sale of securities, accuracy and completeness of information, viruses, conf=dentiality, legal privilege, and legal entity disclaimers, available at http://www.jpmorgan.com/pages/disclosures/email <http://www.jpmorgan.com/pages/disdosures/email> . This email is confidential and subject to important disclaimers and conditio=s including on offers for the purchase or sale of securities, accuracy and=completeness of information, viruses, confidentiality, legal privilege, and=legal entity disclaimers, available at http://www.jpmorgan.com/pages/disclosures/email chttp://www.jpmorgan.com/p=ges/disclosures/email> <=span> 2 EFTA_R1_01595640 EFTA02479830