S&P rates Mtpcs loan B

Standard & Poor's said that it assigned a preliminary B corporate credit rating to Mtpcs Holdings LLC.

The outlook is stable.

S&P also assigned a preliminary B issue-level rating and preliminary 3 recovery rating to the company's proposed $205 million senior secured credit facility, consisting of a $200 million term loan B due 2018 and a $5 million revolver due 2016. The preliminary recovery rating of 3 indicates the expectation for meaningful (50%-70%) recovery in the event of default.

The proceeds will be used to repay existing senior debt, redeem $53.3 million of preferred equity and subordinated notes, fund a $50.3 million dividend to shareholders and cover related fees.

The preliminary ratings reflect an aggressive financial risk profile and vulnerable business risk profile given the company's limited scale and minimal geographic diversity, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.