Frontier Communications entered into a credit agreement with a group of lenders led by CoBank as administrative agent for a $315 million senior secured term loan facility.

According to an 8-K filing, the final maturity date of the credit agreement is October 12, 2021.

The proceeds of the term loan have been used to repay Frontier’s existing senior secured term loan under the credit agreement dated October 14, 2011, as amended, among Frontier, CoBank and other lenders and for general corporate purposes.

Repayment of the outstanding principal balance will be made in installments of $7.875 million, the first of which will be on October 31, 2016, and thereafter will be made on a quarterly basis. The remaining outstanding principal balance will be repaid on the final maturity date.

Borrowings under the term loan will bear interest based on margins over the base rate or LIBOR, at the election of Frontier. Interest rate margins under the facility (ranging from 0.875% to 2.875% for base rate borrowings and 1.875% to 3.875% for LIBOR borrowings) are subject to adjustment based on Frontier’s total leverage ratio.

The term loan will be secured by a pledge of the stock of Frontier North, a wholly owned subsidiary.

Stamford, CT-based Frontier Communications is a telecommunications company mainly serving rural and small communities.