S&P reviews Alaska Communications

Standard & Poor's said it placed its BB- issue-level rating on Alaska Communications Systems Group Inc.'s senior secured debt on CreditWatch with positive implications.

The CreditWatch placement reflects the agency’s expectation for improved recovery prospects for the senior secured debtholders as a result of the company's planned debt repayment.

Alaska Communications agreed to sell its remaining stake in Alaska Wireless Network LLC to GCI Inc. for $300 million. Alaska Communications currently owns one-third of Alaska Wireless while GCI owns the remaining two-thirds.

Alaska Communications will use the net cash proceeds from the transaction to repay existing debt.

The B+ corporate credit rating and stable outlook on Alaska Communications and its subsidiaries are not immediately affected by the company's agreement to sell its remaining one-third interest in the joint venture.

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