S&P: WaveDivision loan BB-

Standard & Poor's said it assigned a B+ corporate credit rating to WaveDivision Holdings LLC, along with a BB- rating and 2 recovery rating to its proposed $50 million senior secured revolver and $471 million term loan B.

The 2 recovery rating indicates 70% to 90% expected recovery in a default.

The company also is expected to issue about $250 million of senior unsecured notes at a later date, which is factored into the ratings, S&P said.

The outlook is stable.

The proceeds from the new debt, coupled with a $202 million equity contribution from Oak Hill Capital and GI Partners, will be used to fund the $538 million equity purchase price of Wave by Oak Hill, refinance about $347 million of existing Wave debt, pay about $33 million of fees and expenses and add about $5 million of cash to the balance sheet, the agency said.

The ratings reflect the company's fair business risk profile and highly leveraged financial risk profile, S&P said.

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