Moody's: Mobilitie loan B2

Moody's Investors Service said it assigned a first-time B2 corporate family rating and a B3 probability of default rating to Mobilitie Investments II, LLC.

The outlook is stable.

The rating agency also assigned a B2 (LGD3, 31%) rating to the company's proposed $415 million senior secured credit facilities, consisting of a $25 million revolver, $240 million term loan and a $150 million delayed draw term loan.

The proceeds from the term loan borrowing will be used to repay existing debt.

The ratings reflect the company's high adjusted debt-to-EBITDA leverage and expected negative free cash flow over the next several years as the company will continue its tower construction and acquisitions to reach a target of 3,000 sites by 2014, the agency said.

The ratings also address the significant industry and customer concentration risks inherent in the company's business plans while recognizing management's emerging operating track record, the agency added.

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