Verizon is reportedly looking to secure $10 billion in funding to support its acquisition of fiber provider Frontier Communications.

As reported by Bloomberg yesterday (October 8), the carrier is lining up short-term funding to finance the acquisition.

Verizon
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Verizon announced its agreement to acquire Frontier Communications for $20 billion in an all-cash transaction last month.

Bloomberg, citing people familiar with the matter, reports that investment banking company Morgan Stanley is leading a group of banks on the committed financing known as a bridge loan.

Last month, Verizon said that it expects the acquisition to be completed within 18 months.

The deal is set to bolster Verizon's fiber network, allowing it to compete with rival telco AT&T. Verizon stated the deal would also expand its intelligent Edge network to include digital innovations like AI and IoT.

Frontier provides broadband connection to around 7.2 million locations across 25 states and has 2.2 million fiber customers.

At present, Verizon provides fiber services via its Fios offering. The company has around 18 million fiber locations across the country.