Moody's could cut San Juan Cable

Moody's Investors Service said it placed all ratings for San Juan Cable LLC (OneLink), including its B2 corporate family rating, under review for downgrade.

Liberty Global, Inc., the 60% owner of OneLink, discovered following the merger of OneLink and Liberty Cablevision of Puerto Rico LLC that materially misstated financial information was provided to lenders relating to financial periods prior to the merger, constituting a technical default under the credit agreement.

As such, lenders could demand repayment of debt, which consists of about $510 million of first-lien term loan and $145 million of second lien term loan.

The company does not expect correction of the misstatements to result in a financial covenant default and is seeking a waiver of the technical default from bank lenders, the agency said.

Moody's said its review will focus on whether the company will be able to obtain the aforementioned waivers from its lenders and file audited statements within a reasonable period.

© 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.