Moody's: Midcontinent loan Ba3, bonds B3

Moody's Investors Service said it affirmed the B1 corporate family rating of Midcontinent Communications.

The agency assigned a Ba3 rating to its proposed first-lien credit facility and a B3 rating to its proposed senior unsecured bonds.

The company plans to use proceeds, consisting of $350 million of first-lien term loans and $250 million of bonds, to refinance existing debt. The transaction includes a proposed $125 million revolver, which is expected to be undrawn at close.

The outlook is stable.

Moody's said the leverage neutral transaction favorably extends the maturity profile. The agency also upgraded the probability of default rating to B1-PD from B2-PD to reflect the proposed capital structure containing a mix of bank debt and bonds compared to the existing all first-lien debt structure.

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