Moody's affirms Consolidated Communications

Moody's Investors Service said it affirmed Consolidated Communications Holdings, Inc.'s B1 corporate family rating, B3 senior unsecured notes and SGL-2 speculative grade liquidity rating following the company's announcement that it will increase the size of its senior secured credit facilities by up to $45 million to fund the purchase of the remaining equity interests held by its sponsor, Providence Equity.

The ratings of Consolidated Communications Acquisition Texas, Inc.'s and Consolidated Communications, Inc.'s senior secured credit facilities, including the $45 million add-on to term D, have also been affirmed at B1.

The outlook remains stable.

In Moody's opinion, although the $60 million total equity buyback will be funded with up to $45 million in debt and approximately $15 million from cash balances, which will modestly impact the company's liquidity, the increase in leverage is not significant enough to materially alter the company's overall credit profile.

The company's liquidity is supported by the remaining $20 million in cash balances and the availability of the $30 million revolving credit facility, the agency added.

© 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.