Moody’s rates Radiate CFR B2, loans B1

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Radiate HoldCo, LLC, the parent of RCN Telecom Services, LLC and Grande Communications Networks LLC.

The agency assigned a B1 instrument-level rating to the company's proposed $1.3 billion first-lien term loan and $150 million first-lien revolver.

Moody’s said the ratings are notched higher than the corporate family rating as it expects the company to subsequently issue unsecured notes to fund the balance of the transaction, which the agency estimates will be close to $500 million.

Proceeds will be used to fund the acquisition price of about $2.25 billion for both RCN and Grande. At close of the transaction, all debt at both RCN and Grande will be repaid and all ratings will be withdrawn, with Radiate surviving as the sole credit entity.

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