Moody’s changes GCI outlook to positive

Moody's Investors Service said it changed GCI, Inc.'s outlook to positive from stable following the announcement that the company will purchase Alaska Communications Systems Holdings' wireless subscriber base and remaining one-third interest in the Alaska Wireless Network for $300 million.

Concurrently, the agency affirmed GCI's B2 corporate family rating, B2-PD probability of default rating, SGL-2 speculative grade liquidity rating as well as the group's existing instrument ratings.

The transaction is targeted to close in the first quarter of 2015 and is subject to certain closing conditions. Financing is yet to be determined.

Moody’s said the outlook change reflects its view that GCI's credit metrics will improve from having full ownership of Alaska Wireless. The agency expects the acquisition will increase free-cash-flow generation and that leverage (Moody's adjusted) could trend towards 4 times over the next two years.

© 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.