Fitch rates Windstream incremental loans BB+

Fitch Ratings said it currently rates Windstream Services, LLC's term loans BB+/RR1.

The company is offering $450 million and $150 million in additional incremental senior secured term loans under its existing tranche B6 term loan.

The incremental $150 million term loan is expected to be funded in December and proceeds will be used to repay outstanding revolver borrowings and fees and expenses related to the combination of its parent, Windstream Holdings, with EarthLink Holdings Corp.

The incremental $450 million term loan will be drawn at the close of the EarthLink transaction. If the transaction has not closed by March 15, 2017, the term loan will be funded and the proceeds placed in escrow pending the close of the transaction.

Windstream's issuer default rating is BB- and the outlook is stable.

Windstream reached an agreement to merge with EarthLink in an all-stock transaction with a total value, including debt, of about $1.1 billion. Windstream anticipates refinancing EarthLink's roughly $436 million of outstanding debt.

Fitch said it expects EarthLink to become a guarantor of Windstream's credit facilities and senior unsecured notes. The transaction is expected to close in the first half of 2017.

© 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.