EFTA02480395

From: jeffrey E. <[email protected]> Sent: Monday, November 16, 2015 4:54 PM To: Richard Kahn Subject: Fwd: Frontier bonds with some leverage Forwarded messag= From: Barrett, Paul S Date: Mon, Nov 16, 2015 at 11:03 AM To: Brad Wechsler Cc: &qu=t;Matusow, Jeffrey M" <)-1. b"...—... f. *.,..0,r ts" Barrett Team < n>, "=elson, Justin D" <- <mailto > >, "Jeffrey Epstein ([email protected])" <[email protected]> Brad<=span> The Frontier bonds =re now offered at 100.50. Lending value is 65%. So if we buy these in the =argin account you end up with a 21% leveraged yield. Would recommend $1-=2MM. </=> FIR = Y204/15/20 (35906AAH1) Issuer:=C2 =A0 =FRONTIER COMMUNICATIONS Ticker:=C2 =A0 FTR=u> Ratings= =C2 Ba3/BB-/B= Ranking= =C2 Sr Unsecured=/u> Coupon:=C2 =A0 8.50<=> Maturit=: =C2 04/15/20 Price:=C2 =AO =AO 100.50 YTW: =AO =C2 =C2 8.35% EFTA_R1_01596445 EFTA02480395 VIM: =AO =C2 =A0 8.35% OAS Mod=Duration: 3.58 Cusip:=C2 =A0 3590=AAH1 Company Descr=ption: Frontier Communicat=ons Corp. (FTR) is the largest pure rural telecom company in the U.S. focu=ed on providing services to small and medium-sized cities. Frontier =995 services include voice, high-speed internet, satellite video (through agreements with DISH), wireless internet data acc=ss, data security solutions, bundled offerings, specialized bundles for sm=ll businesses and home offices. In February of 2015, FTR announced t=e acquisition of Verizon FiOS assets in Texas, Florida and California. In September 11, Frontier priced $6.6bn =f unsecured notes, consisting of $1bn of 8.875% notes due 9/2020, $2bn of =0.5% notes due 9/2022 and 3.6bn of 11% notes due 9/2025. The unsecured iss=ance 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 Verizo= transaction. Prior to the FiOS transaction, FTR completed the acquisition=of AT&T wireline operations in Connecticut for $2Bb in cash. =span style="font-size:8.0pt;font-family:"Verdana","sans- s=rif";color:#5f5f5f"> =span style="font-size:8.0pt;font-family:"Verdana","sans-s=rif"">Paul Barrett I Managing Director I Global Investment Opportunities Group I J.P. Morgan Securities LLC 1 1.P. Morgan Private Bank 1=1.P. Morgan Chase Bank N.A. 320 Park Avenue, 14th Floor, New <tel:%28212%29%20310.0108> NOT AN OFFICIAL CONFIRMATION: For informational purposes only= This report does not represent an official account of the holdings,=balances, or transactions made in your account and is being provided at yo=r request. Please refer to your monthly account statement for the official record of all of your account activitie=. For question, please call your J.P. Morgan representative.4=> In discussion of options and other strategies, results and risks =re based solely on hypothetical examples cited; actual results and risks w=Il 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 herei= are suitable to their needs. In actual transactions, the client's=counterparty for OTC derivatives applications is JPMorgan Chase Bank, N.A., and affiliates. For a copy of the "C=aracteristics and Risks of Standardized Options" booklet, please c=ntact your JPMorgan Advisor. This email is confidential and subject to important disclaimers a=d conditions including on offers for the purchase or sale of securities, accuracy and completeness of information, viruses, con=identiality, legal privilege, and legal entity 2 EFTA_R1_01596446 EFTA02480396 disclaimers, available at http://www.jpmorgan.com/pages/=isclosures/email <http://www.jpmorgan.com/pages/disdosures/email> . This email is confidential and subject to important disclaimers and conditi=ns including on offers for the purchase or sale of securities, accuracy a=d completeness of information, viruses, confidentiality, legal privilege, =nd legal entity disclaimers, available at http://www.jpmorgan.com/pages=disclosures/email <http://www.jpmorgan.c=m/pages/disclosures/email> please note =he information contained in this communication is confidential, may be =ttorney-client privileged, may constitute inside information, and is in=ended only for the use of the addressee. It is the property of JEEUnauthorized use, disclosure or copying of this communication or any p=rt thereof is strictly prohibited and may be unlawful. If you have rece=ved this communication in error, please notify us immediately by ret=rn e-mail or by e-mail to [email protected] <mailto:[email protected]> , and destroy this communication an= all copies thereof, including all attachments. copyright -all rights r=served 3 EFTA_R1_01596447 EFTA02480397