Frontier Secure’s sale to SYKES will not affect VCEDA loan payments: Belcher
Officials with Frontier Secure, VCEDA and the Wise County IDA pose with a $5.6 million check, June 29, 2016.
Thursday, May 25, 4:30 p.m. – The anticipated sale of Frontier Communications’ subsidiary Frontier Secure to Sykes Enterprises will not affect the repayment of a $5.6 million Virginia Coalfield Economic Development Authority loan that had paved the way for Frontier Secure to open its Wise, Va., facility, says VCEDA’s executive director.
“This doesn’t change any terms and conditions on that loan,” Jonathan Belcher told bjournal.com. “It’s repaid in essence through the rent payments the company makes to the (Wise County) IDA. That part of it is still the same. It’s just substituting Sykes for Frontier.”
Belcher says the loan will still be repaid through the same mechanism – via the lease payments the company is paying to the IDA, which in turn will be sent on to VCEDA.
Though neither company has officially announced the sale, SYKES has issued a release announcing it had signed a definitive asset purchase agreement April 24, and statements by SYKES CFO John Chapman point to Frontier Secure as the acquired party. “We get ready-made revenues and delivery infrastructure across four sites with both existing and new strategic clients, that span the financial services and technology verticals,” Chapman says. Frontier Secure operates four centers, including two in Utah, and one in Florida, in addition to the Wise facility. Frontier Secure lists the financial services and technology sectors as their leading client bases.
Frontier Secure online hiring notices now bear the disclaimer, “This position will be transferring from Frontier to SYKES Enterprises, Inc. on June 1, 2017.”
Additional details will be available in the June 2017 issue of The Business Journal of Tri-Cities, TN/VA.