S&P assigns WideOpenWest loans BB

S&P said it assigned BB issue and 2 recovery ratings to WideOpenWest Finance LLC’s expected $250 million revolving credit facility due 2026 and $730 million term loan B due 2028. The 2 rating indicates expectations of substantial (70%-90%; rounded estimate: 75%) recovery in default. Concurrently, the agency boosted the issuer’s rating to BB- from B and removed it from CreditWatch, where it was placed on July 1.

“The upgrade primarily reflects a significant improvement in credit metrics from the asset sales. WOW sold its Cleveland and Columbus, Ohio service areas to Atlantic Broadband for $1.125 billion in September 2021. It also completed the sale of certain other properties to Radiate Holdco LLC for $661 million. As a result of these transactions, it will pay down about $1.5 billion of debt, enabling a material reduction in its debt to EBITDA to the high-2x from about 5.3x,” S&P said in a press release.

WOW will use the loans to refinance its remaining $729 million term loan B.

The outlook is stable.

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