Moody's rates WideOpenWest loans B2, B3

Moody's Investors Service said it assigned a B2 corporate credit rating to WideOpenWest Finance LLC, a B2 rating to its proposed senior secured first-lien credit facility and a B3 rating to its proposed senior secured second-lien credit facility. Proposed facilities consist of a $510 million senior secured first-lien term loan, a $150 million senior secured second-lien term loan and a $60 million senior secured first-lien revolving credit facility. The outlook is stable.

Proceeds from the debt offering, combined with a $180 million cash equity contribution from Avista Capital Partners, will fund the purchase of WideOpenWest by Avista and repay $360 million of existing debt.

WideOpenWest's ratings reflect high financial risk and Moody's view that the company's position as an overbuilder magnifies the challenges of operating in an increasingly competitive environment. Debt to EBITDA is about 7.5x.

The agency said that expectations for a fairly rapid decline in leverage, the company's upgraded and efficient network, management's track record and the meaningful equity contribution support the ratings.

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