S&P: Goodman unchanged

Standard & Poor's said the ratings on Goodman Networks Inc.'s senior secured notes due 2018, including the B rating and 4 recovery rating, remain unchanged following the company's $100 million add-on to the notes.

The proposal will increase the size of the facility to $325 million from $225 million. The 4 recovery rating indicates 30% to 50% expected default recovery.

The proceeds will be used from the add-on, in addition to about $26 million in cash, to fund the acquisition of Multiband and pay transaction fees.

The acquisition reduces the company's concentration of revenues from AT&T, S&P said, and provides Goodman with a skilled labor force that can be leveraged to complete small cell infrastructure projects for wireless carriers.

The B corporate credit rating and stable outlook on Goodman Networks also are unchanged.

But the company has a vulnerable business risk profile given its high customer concentration, even after the acquisition of Multiband, S&P added.

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