S&P assigns Consolidated notes B+

S&P said it assigned B+ issue-level and 2 recovery ratings to Consolidated Communications Inc.’s proposed $400 million of senior secured notes due 2028. The 2 recovery rating indicates an expectation for substantial (70%-90%; rounded estimate: 70%) recovery in default.

S&P rates Consolidated’s other senior secured debt B+ and senior unsecured debt CCC+.

The company will use the proceeds to repay $400 million of its $1.4 billion term loan due 2027 and pay related fees and expenses.

“Because the transaction does not materially affect Consolidated’s credit metrics, our issuer credit rating and outlook on the company are unchanged. Furthermore, we view the transaction favorably because Consolidated will reduce its interest costs through a repricing of the remaining $1 billion of outstanding term loan debt,” S&P said in a press release.

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