S&P rates Sidera loans B

Standard & Poor's said it assigned its B issue-level rating and 4 recovery rating to Sidera Networks Inc.'s proposed $375 million senior secured credit facilities.

The credit facilities consist of a $325 million term loan due 2018 and $50 million revolving credit facility due 2017. The 4 recovery rating on this debt indicates an expectation for average recovery in the event of a payment default.

The agency also affirmed its B corporate credit rating and stable outlook on Sidera.

"The B corporate credit rating on New York City-based fiber-optic network operator Sidera reflects Standard & Poor's Ratings Services' assessment of the company's financial risk profile as highly leveraged, based on its high debt levels and our expectation that capital expenditures will remain elevated, resulting in minimal or negative free operating cash flow generation for the next few years," said S&P credit analyst Michael Weinstein in a news release.

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