Verizon reportedly lined up financing of $10 billion to help pay for an acquisition of US fibre player Frontier Communications, news which broke on the same day the operator detailed another monetary grant opportunity for small businesses in its home market.

Bloomberg reported the US operator hit up Morgan Stanley to lead arrangement of a short-term bridge loan from various banks. The news outlet stated such deals are typically followed by a longer-term set-up, potentially involving bonds.

It noted Verizon stated it could wrap-up the acquisition of Frontier Communications in 18 months if the winds of regulation and approvals blow favourably, hinting this may be a factor in the operator seeking a short-term funding package.

Verizon agreed the deal last month, with the total transaction valued at $20 billion. It offered commitments around its capital allocation plans, dividend and tackling debt.

Pledge
Bloomberg published its report on the Frontier development yesterday (8 October), the same day Verizon committed to a fresh round of funding to boost digital and other skills of staff working for small businesses.

The operator is offering companies access to free language courses, mentoring and coaching, and so-called community events. Companies which complete training schemes within a set deadline will be eligible to apply for a $10,000 grant.

Verizon collaborates on the project with start-up aid company Next Street and the Local Initiatives Support Corporation: the operator states more than 350,000 small businesses have been helped in previous rounds, “of which 51 per cent are women-owned and 62 per cent are black- or Hispanic-owned”.