Moody’s rates Cable One facility Ba3, notes B2

Moody’s Investors Service said it assigned a Ba3 to Cable One Inc.’s new five-year $1.181 billion senior secured credit facility consisting of a $681 million term loan A and a new $500 million revolving credit facility, upsized by $150 million. The agency also assigned a B2 rating to the company’s new 10-year $500 million of senior unsecured notes.

Moody’s also affirmed Cable One’s Ba3 corporate family rating, upgraded the probability of default rating to Ba3-PD from Ba1-PD and affirmed the outstanding senior secured bank credit facility at Ba3. The SGL-1 speculative grade liquidity rating is unchanged.

The note proceeds are expected to be used for general corporate purposes, including acquisitions and strategic investments, including the company’s investment in Mega Broadband Investments Holdings LLC (Vyve Broadband, MBI and Mega Broadband Investments Intermediate I, LLC). The B-3 upsize is expected to close by the end of the month and the notes offering is expected to close in November. Moody’s will withdraw the ratings on the outstanding revolving credit facility and term loan upon the refinancing’s close.

The outlook remains stable.

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