Frontier, Stonepeak Discuss Up to $1 Billion Fiber JV

Michelle F. Davis, Gillian Tan and Reshmi Basu, Bloomberg News

BRAZIL - 2022/10/20: In this photo illustration, the Frontier Communications Parent, Inc. logo is displayed on a smartphone screen. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images) , Photographer: SOPA Images/LightRocket

(Bloomberg) -- Frontier Communications Parent Inc. is in talks with Stonepeak about forming a joint venture for fiber investment, people with knowledge of the matter said.

The joint venture could involve a capital injection of $500 million to $1 billion, the people said, asking not to be identified discussing confidential information.

Deliberations are ongoing and no final decisions on terms, including the size of the joint venture, have been made. A representative for Stonepeak declined to comment, while a spokesperson for Frontier didn’t immediately provide comment.

Frontier would be the latest telecom company in recent years to tap deep-pocketed investors for help with funding costly fiber expansion. AT&T Inc. has a joint venture with Blackrock Inc. and T-Mobile USA Inc. has one with EQT AB.

On a first-quarter earnings call in May, Frontier’s Chief Executive Officer Nick Jeffery said the company continued to explore partnerships and joint ventures as part of an ongoing strategic review of its business. Frontier has also been selling bonds backed by its fiber assets, with a plan to use some of the proceeds to fund further expansion.

New York-based Stonepeak manages about $65 billion in assets, according to its website. The firm specializes in infrastructure and real assets and has invested across more than 60 countries.

(Adds context on Frontier fiber plans in fifth paragraph)