Moody's rates Cavalier Telephone facility B2

Moody's Investors Service said it assigned a B2 corporate family rating to Cavalier Telephone NewCo, a subsidiary of Cavalier Telephone Corp., and a B2 rating to the company's 's proposed $200 million senior secured credit facility, which includes a revolving credit facility and a term loan B.

The outlook is stable.

Moody's said the ratings broadly reflect Cavalier's substantial business risk, relatively small size and the company's history of acquisitions.

Cavalier's comparatively moderate financial risk and a track record of generating positive free cash flow somewhat offset these risks, the agency said. The ratings also benefit from moderate financial risk, as evidenced by Moody's expectation of improvement of adjusted debt to EBITDA (currently 3.2x) and EBITDA-capex to interest (currently 1.9x) ratios by the end of 2006.

© 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.