Moody's gives RCN Telecom facility B1

Moody's Investors Service said it assigned a B1 rating to the proposed first-lien credit facility of RCN Telecom Services, LLC and affirmed its B1 corporate family rating.

The facility consists of a $775 million term loan and a $40 million revolver (undrawn at close).

RCN said it expects to use proceeds to refinance existing first-lien debt and fund a distribution of about $172 million to its private equity owners, ABRY Partners, LLC and Spectrum Equity.

This dividend, combined with the $120 million distribution in March 2012, exceeds the cash invested by the sponsors with the acquisition of RCN in August 2010, Moody's said.

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