S&P lifts Go Wireless term loan

S&P said it affirmed the B corporate credit rating on Go Wireless Holdings Inc. and raised the issue-level rating on its proposed $300 million first-lien term loan due 2024 to B+.

The agency also revised the recovery rating to 2 from 3, indicating an expectation for substantial (70%-90%; rounded estimate: 70%) recovery in the event of a payment default.

The outlook is stable.

The company will use proceeds from the term loan to refinance existing debt and to pay a special dividend to shareholders.

The agency said the ratings on Go Wireless reflect its decent market position as Verizon's third-largest independent retailer based on store count and somewhat non-discretionary nature of demand for mobile phones.

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