S&P lifts Hawaiian Telcom outlook to stable, rates loan B-

Standard & Poor's said it revised its outlook on Hawaiian Telcom Communications Inc. to stable from negative because the company's proposed $950 million amended and restated credit facilities, combined with expected debt repayment with proceeds from the recently announced sale of the company's directories business, alleviates liquidity concerns.

All existing ratings, including the B- corporate credit rating, are affirmed, the agency said.

Simultaneously, S&P said it assigned to the company's proposed $860 million term loan C facility due 2014 a B- bank loan rating and 3 recovery rating, which indicates expectations for meaningful recovery in the event of a payment default.

The agency said that proceeds from the new term loan C will be used to repay the existing $300 million term loan A and $446 million term loan B facilities and refinance $109 million of borrowings outstanding under the existing revolving credit facility.

Tempering factors include the company's position as the incumbent telephone provider in Hawaii and adequate liquidity, according to S&P.

© 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.