Despite Frontier Communications recent asset sales, which will reduce its debt mountain, the regional telecom remains in trouble. On June 12, 2019 a JP Morgan analyst downgraded some of the company’s bonds; and the stock price dropped as much as 13% in reaction. Also, a distressed fund manager predicted a Chapter 11 filing would happen in 2019. Currently, the publicly traded FTR trades below $1.50, close to it’s all-time low. This must be disturbing for the multiple BDC lenders – in 4 different debt facilities from senior to subordinated, and in maturities as long as 2027. As we’ve noted in prior articles, BDC exposure aggregates $44.2mn, with non-traded Business Development Corporation of America (BDCA) with the largest exposure by far (nearly $40mn), including some junior. The only public BDC lending to Frontier is OCSI, with $1.5mn in 2024 Senior Term Debt and under $100,000 a year of investment income at risk of interruption. Frontier has been moved to our Worry List , just one step away from bankruptcy or restructuring, along with 32 other troubled BDC borrowers.