S&P rates Sorenson revolver B+, loan B-

Standard & Poor's said the preliminary corporate credit rating on Sorenson Communications Inc. remains unchanged at B- after the company's plan to refinance its $495 million term loan due August 2013.

The outlook is stable.

The agency also said it assigned a preliminary B+ rating to the company's proposed $25 million first-out revolving credit facility due October 2014 with a preliminary recovery rating of 1, indicating 90% to 100% expected default recovery.

S&P also said it assigned a B- rating to the company's $500 million first-lien term loan due October 2014 with a preliminary recovery rating of 3, indicating 50% to 70% expected default recovery.

The proceeds will be used to repay in full the existing $495 million term loan due August 2013.

The refinancing of the term loan pushes out the 2013 maturity for 14 months, which gives the company more time to finalize a longer-term refinancing plan to address its 2014 and 2015 maturities, which represent virtually all of the company's debt, the agency said.

Despite its high debt leverage, S&P said the company will generate positive discretionary cash flow and maintain adequate liquidity over the next 12 to 18 months.

© 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.