Moody's rates Mediacom notes B2

Moody's Investors Service said it assigned a B2 rating to Mediacom Broadband LLC's proposed $300 million senior notes due August 2015.

Moody's also affirmed Mediacom Broadband's $400 million 11% senior notes due July 2013 at B2, $600 million senior secured revolving credit facility at Ba3, $300 million senior secured term loan A due March 2010 at Ba3 and $500 million senior secured term loan C due February 2014 at Ba3. Moody's also affirmed Mediacom Communications' corporate family rating at B1 and $172.5 million 5.25% convertible senior notes due July 2006 at Caa1 as well as Mediacom LLC's $400 million senior secured revolver at Ba3, $200 million senior secured term loan A due September 2012 at Ba3, $550 million senior secured term loan B due March 2013 at Ba3, $125 million 7.875% senior unsecured notes due 2011 at B3 and $500 million 9.5% senior unsecured notes due 2013 at B3.

Moody's anticipates Broadband will use proceeds to repay bank debt in the short term and ultimately to repay more junior securities over time.

Moody's said it views the proposed transaction as mostly neutral. In Moody's view, the proposed transaction enhances financial flexibility somewhat because it effectively increases revolving credit facility availability and extends the debt maturity profile, but the increased flexibility comes at the cost of higher interest expense.

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