S&P rates Windstream loan BB+

Standard & Poor's said it affirmed its BB+ issue-level rating on Windstream Corp.'s amended and restated $2.8 billion senior secured credit facility and assigned its BB+ issue-level rating to the company's proposed $280 million senior secured term loan A-3.

The recovery rating is 1, which indicates expectations for very high recovery in the event of payment default.

According to S&P, this credit facility amends and restates the term loans in the credit agreement by extending the maturity and resetting the amortization of the existing A-2 tranche while creating a new A-3 tranche.

S&P said its BB- corporate credit rating and stable outlook on Windstream are not affected by the new debt since the agency expects the company to use the proceeds to repay $280 million outstanding under the revolver; the agency therefore said it believes that pro forma leverage of about 3.9x should remain unchanged.

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