S&P gives B to Cogent notes

S&P said it assigned its B issue-level and 5 recovery ratings to Cogent Communications Group Inc.'s proposed $450 million senior secured notes due 2027. The 5 recovery rating indicates an expectation for modest (10%-30%; rounded estimate: 15%) recovery in the event of a payment default.

Cogent will use the proceeds from these notes to redeem its €350 million (about $375 million) of 4 3/8% senior notes due 2024 and for general corporate purposes.

“Despite the increase in debt, we believe the recovery prospects for Cogent's existing secured lenders are not affected by the transaction,” S&P said in a news release.

The B+ issuer credit rating and stable outlook on Cogent are unchanged.

© 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.