S&P rates GCI loans BB+

Standard & Poor’s said it assigned its BB+ issue-level and 1 recovery ratings to GCI Inc.’s proposed $275 million senior secured term loan B due 2021 and existing credit facility, which comprises a $240 million delayed-draw term loan A and a $150 million revolving credit facility.

The 1 recovery rating indicates an expectation for very high recovery (90%-100%) in the event of payment default. GCI Holdings Inc. is the borrower.

GCI plans to use the proceeds from a $275 million term loan and a $75 million investment from private equity sponsor Searchlight Capital Partners LLC to fund the $300 million purchase price for the remaining one-third stake of its wireless joint venture, the Alaska Wireless Network LLC.

The B+ issue-level and 5 recovery ratings on the company’s senior unsecured debt rating are unchanged. The 5 recovery rating indicates an expectation for modest recovery (10%-30%; at the high end of the range) in the event of payment default.

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