Moody's assigns Mega Broadband B2

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Mega Broadband Investments Intermediate I, LLC ahead of its planned refinancing and shareholder distribution.

Moody's also assigned a B2 to Eagle Broadband Investments, LLC's proposed issuance of a $725 million senior secured bank credit facility, including a $75 million revolving credit facility due 2025 and a seven-year, $650 million term loan. Eagle is the borrower on the first-lien bank credit facility. The outlook is stable.

“Moody's rates Eagle’s senior secured bank debt facility and senior secured instruments B2 (LGD4), in line with the B2 CFR, reflecting the company's B2-PD probability of default rating and an average expected family recovery rate of 50% at default as these obligations account for the vast majority of the capital structure,” the agency said in a press release.

Cash and term loan proceeds of $650 million, the financing will be used to repay $535 million of debt, close to $100 million in dividends plus transaction fees and expenses.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.