Nomura is encouraged by Frontier's (FTR) recent announcement it had repaid $502.7M worth of...

|About: Frontier Communications Cor... (FTR)|By:, SA News Editor
Nomura is encouraged by Frontier's (FTR) recent announcement it had repaid $502.7M worth of 6.25% senior notes. The repayment will reduce annual interest expense by $30M-$35M, analyst Mike McCormack estimates, something that will support the rural telco's dividend (current yield of 8.85%). McCormack believes Frontier's dividend will amount to 67% of 2013 free cash flow, compared with 92% for peers Centrylink (CTL) and Windstream (WIN). Frontier, which reports on Feb. 21, had over $8.8B in debt as of Sep. 29.