S&P lifts Logix first-lien loans

S&P said it lifted its issue-level rating on Logix Holding Co. LLC's senior secured first-lien debt, which comprises its $250 million term loan B due 2024 and $20 million revolving credit facility due 2022, to CCC+ from CCC and revised the recovery rating to 2 from 3.

The upgrade follows the company's issuance of an unrated $70 million of second-lien debt due 2025, which it used to repay $15 million of revolver borrowings and $54 million of its first-lien term loan, the agency said. The 2 recovery rating indicates substantial recovery (70%-90%; rounded estimate: 80%) in default.

“Our CCC issuer credit rating and negative outlook on its parent company, Houston-based fiber infrastructure provider and operator Logix Intermediate Holding Corp. (Logix), are unchanged because the transaction is leverage neutral, and we continue to view its capital structure as unsustainable,” S&P said in a press release.

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