S&P boosts MetroNet first-lien loans

S&P said it raised its issue-level rating on MetroNet Systems Holdings LLC's first-lien debt to B from B- and revised the recovery rating to 2 from 3 following an upward revision in its stressed enterprise valuation to account for contributions from acquired properties and continued progress in developing markets. The 2 recovery rating indicates an expectation of substantial (70%-90%; rounded estimate: 75%) recovery in default.

MetroNet is planning a $95 million add-on to its term loan B due 2028, total of $866 million outstanding, and to increase its revolving credit facility due 2026 by $50 million to $175 million.

MetroNet Holdings LLC, the parent company, plans to use the proceeds from the add-on to repay $92 million of revolver borrowings, pay fees and expenses, with minimal cash to the balance sheet.

The firm’s B- issuer rating and stable outlook are unaffected, S&P said.

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