S&P gives B- to Communications Sales notes

S&P Global Ratings said it assigned its B- issue-level rating and 6 recovery rating to Communications Sales & Leasing Inc.'s proposed $400 million senior unsecured notes due 2024. The 6 recovery rating reflects an expectation for negligible (0%-10%) recovery in the event of a payment default.

The company will use net proceeds from the notes to repay borrowings under its $500 million revolving credit facility due 2020, which has about $250 million outstanding, and to add cash to the balance sheet.

S&P said its B+ corporate credit rating and stable outlook on the company remain unchanged.

“We do not expect the transaction will have a material impact on key credit measures, including adjusted leverage, which was around 5.8x as of Sept. 30, 2016,” S&P said in a news release.

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