Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers M > Headlines for Mega Broadband Investments Intermediate I, LLC > News item |
S&P alters Mega loan recovery rating
S&P said it affirmed the B+ issue-level rating but lowered the recovery rating on Mega Broadband Investments Intermediate I LLC's (Vyve Broadband) senior secured first-lien debt after the company reported its planned $155 million add-on to its $650 million term loan due 2027.
The agency revised the recovery rating on the company's secured debt to 4 from 3. The 4 recovery rating indicates an estimate of average (30%-50%; rounded estimate: 45%) recovery in default. A 3 rating indicates an estimate of 50%-70% recovery in default. “The lower recovery rating reflects the higher amount of secured debt, which reduces recovery prospects for existing first-lien lenders,” S&P said in a press release.
The company is expected to use the add-on proceeds to fund a $150 million dividend to its shareholders and pay down $5 million outstanding under the revolving credit facility.,”
The B+ issuer credit rating and stable outlook are unchanged, the agency said.
© 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.