Morgan Stanley downgrades Frontier; $1.55B debt offering announced

• Citing AT&T deal risk and industry challenges, Morgan Stanley has downgraded Frontier (FTR -1.2%) to Underweight. Its target is $5.20.
• The downgrade comes a month after Frontier posted a Q2 report featuring light subscriber figures.
• Separately, Frontier has announced it's selling $1.55B worth of senior notes - $775M are due in 2021, and an equal amount in 2024. The proceeds will be used to help finance the AT&T deal.
• Frontier had $7.9B in debt as of June 30, and $805M in cash.