Moody’s lowers Midcontinent notes to Ba2

Moody's Investors Service said it downgraded Midcontinent Communications' senior secured instrument-level rating to Ba2 from Ba1 following the company's refinancing of its $250 million 6¼% notes due 2021.

To fund the transaction, the company will draw $50 million on an upsized $300 million revolving credit facility, upsize its existing $285 million term loan B to $385 million, and upsize the 6 7/8% senior notes due 2023 to $525 million from $425 million.

Proceeds from the transaction will save the company roughly $3.4 million in interest annually.

Midcontinent’s B1 corporate family rating, B1-PD probability of default rating and B3 (LGD 5) senior unsecured instrument level ratings were affirmed.

The outlook remains stable.

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