On January 29, 2014, Frontier Communications Corporation entered into a new $1.9 billion bridge term loan credit facility. The terms of the Bridge Credit Facility are set forth in the Bridge Credit Agreement, dated as of January 29, 2014, among the company, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent. The Bridge Credit Facility will be available only to finance the transactions related and pursuant to the Stock Purchase Agreement dated December 16, 2013 between AT&T Inc. and the Company and to pay related fees and expenses.

Any funding under the Bridge Credit Facility will occur substantially concurrently with the consummation of the Acquisition, subject to customary closing conditions. Initial loans under the Bridge Credit Facility made on the Funding Date will mature on the first anniversary of the Funding Date. The Initial Loans will bear interest at a rate equal to adjusted LIBOR plus a margin specified in the Bridge Credit Agreement.

The Bridge Credit Facility contains customary events of default and covenants.