S&P assigns GCI facility BB+

S&P said it assigned its BB+ issue-level rating and 1 recovery rating to GCI Inc.'s senior secured credit facility, which consists of a $215 million term loan A due 2021, a $246 million term loan B due 2022 and a $200 million revolving credit facility due 2021.

The facility will be issued by wholly owned subsidiary GCI Holdings Inc.

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

GCI will use proceeds to refinance its existing senior secured credit facilities and pay related fees and expenses.

S&P said it expects EBITDA to decline around 5%-10% in 2016 due to the loss of roaming revenue from Verizon. Still, the refinancing results in modestly lower levels of debt such that adjusted debt to EBITDA will remain in the mid-4 times area in 2016.

As such, the company’s BB- corporate credit rating and stable outlook are unchanged, the agency added.

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