S&P trims AP TeleGuam

S&P said it lowered its issue-level rating on AP TeleGuam Holdings Inc.’s subsidiary, Teleguam Holdings LLC’s senior secured first-lien term loan and revolving credit facility to B+ from BB-.

The agency also revised the recovery rating to 3 from 2, indicating S&P’s expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of payment default.

The downgrade follows the company’s proposed amendment to its credit facility.

The amendment will include a $25 million add-on to its senior secured first-lien term loan B, which will increase to about $146.5 million.

Proceeds will be used to repay its $25 million second-lien term loan.

“The downgrade and revised recovery rating are due to the incremental first-lien secured debt and repayment of the second-lien term loan, which dilutes recovery prospects for first-lien debtholders in our hypothetical default scenario,” said S&P in a press release.

No other ratings are affected by the transaction, S&P said.

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