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Published on 12/2/2020 in the Prospect News Bank Loan Daily.

S&P gives Consumer Cellular B-

S&P said it assigned B- ratings to Consumer Cellular (CCI Buyer Inc.) and its planned first-lien credit facilities, consisting of a $100 million revolving credit facility due 2025 and $1.1 billion first-lien term loan due 2027. The 3 recovery rating reflects an expectation of meaningful (rounded estimate: 55%) recovery in default.

The agency also gave a CCC issue-level and 6 recovery rating to the proposed $300 million second-lien term loan. The 6 recovery rating reflects an expectation of negligible (rounded estimate: 0%) recovery in default.

“The ratings on Consumer Cellular primarily reflect its high leverage of around 8x. Pro forma for the transaction, we expect adjusted debt to EBITDA will be elevated, at around 8.2x in 2020. However, healthy subscriber growth and stable churn should translate into high-single-digit revenue and EBITDA growth and leverage reduction to the high-6x area in 2021 and low-6x area in 2022,” S&P said in a press release.

Loan proceeds will be used by GTCR to help to acquire the company.

The outlook is stable.


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