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FTRPR

anonymous 1 year ago • updated 1 year ago 6

The article of FTRPR is completely incorrect.  The preferred series A (FTRPR) does not convert to 17-20 shares of common.  The conversion ration is more like 1.3 to 1.  READ THE FIRS PAGE OF THE PROSPECTUS!

http://investor.frontier.com/encrypt/files?file=nasdaq_kms/assets/2018/02/06/12-07-15/FTR%20Mandatory%20Convertible%20Pref%20Stock%20description%20July%202017_files4.pdf&file_alias=4026

Please can you send us the link to the article in question, so that we can investigate?


Thanks.

That link isn't to a Seeking Alpha article. Can you point us to which article on our site you said was incorrect?

No the link is to the Frontier website which details the Preferred to Common conversion rate.  The Seeking Alpha links are


  1. My Best Investing Idea For 2017: Frontier Communications, 11.125...

    seekingalpha.com/article/4028871-best-investing-idea...

    Dec 7, 2016 ... FTRPR is a mandatory convertible preferred share issued by Frontier Communications which will be converted into the common stock of Frontier Communications. It is a preferred share, not a debt instrument, which will be converted into 17-20 shares of Frontier Common shares on June 28th, 2018. A more ...

  2. Frontier Communications Capital Structure Arbitrage Opportunity...

    seekingalpha.com/article/4137036-frontier-communicat...

    Jan 11, 2018 ... Arbitrage Opportunity: FTRPR (FTRPR) / FTR (FTR) 11⅛ 6/29/18 Preferred (the “ Preferred”) ... Anyway, if you dig through the Preferred's prospectus in Exhibit 3.1 of FTR's 6/4/2015 Form 8-K, you'll find that, on the Mandatory Conversion Date, if FTR's VWAP in the trading days leading up to the Mandatory ...

  3. No Arbitrage Profits For Frontier Communications Preferred Versus...

    seekingalpha.com/article/4074759-arbitrage-profits-f...

    May 19, 2017 ... In a recent SA article, Owl proposed that Frontier Communications (NYSE:FTR) preferred stock (FTRPR) was a better value than the common stock with a simple accounting of cash flows. The concept is simple. On June 28, 2018, the preferred stock will convert to 20 shares of the common stock. Knowing ...

The first link there, which mentions 17-20 shares was written in December 2016, before Frontier executed a 15-for-1 reverse split in July 2017. Does that explain the number disparity?

Thanks,  20/15 = 1.3333  which is the high figure on the Frontier web site.  I'm sure that must be the reason for the disparity.