S&P rates Mobilitie loan BB-

Standard & Poor's said that it assigned a preliminary B corporate credit rating to Mobilitie Investments II LLC and a preliminary BB- issue-level rating and a preliminary 1 recovery rating to the company's $415 million in combined senior secured credit facilities, including a $240 million term loan, a $150 million delayed draw term loan and a $25 million revolving credit facility.

The outlook is stable.

The ratings on Mobilitie reflect the company's highly leveraged financial profile, including expectations for free operating cash flow deficits and leverage, the agency said. The ratings assume EBITDA growth but also increased debt from the delayed draw term loan and adjusted leverage continuing to exceed 8 times over the next few years.

These factors overshadow the company's satisfactory business profile as a wireless tower operator with long-term tenant contracts, predictable cash flows and attractive EBITDA margins in excess of 40%, the agency added.

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