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S&P rates Mid-Continent loan BB, notes B
S&P gave Mid-Continent Communications’ prospective $685 million term loan B due 2026 a BB rating with a recovery rating of 2.
It also assigned a B issue-level rating and 6 recovery rating to Mid-Continent’s prospective $300 million senior unsecured notes due 2027. The notes will be issued by Mid-Continent and Mid-Continent Finance Corp.
S&P expects the company to use the proceeds to fund the redemption of $550 million of 6 7/8% notes due 2023, pay down $376 million on its term loan B due in 2023, partially pay down debt on its $30 million revolver and pay $29 million in fees and expenses.
The agency sees the transaction as leverage neutral, so the issuer credit rating of BB- is unaffected.
S&P did place the company’s $300 million revolver on CreditWatch with negative implications “given that it’s proposed capital structure will include more secured claims.”
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