Moody's rates R.H. Donnelley notes Caa1

Moody's Investors Service said it affirmed R.H. Donnelley Corp.'s B1 corporate family rating and assigned a Caa1 rating to its proposed $2.142 billion senior unsecured notes. The rating action follows the company's announcement that it has revised the structure of the debt that it plans to issue in connection with its proposed acquisition of Dex Media Inc.

The outlook is stable.

The most significant changes to the previously announced structure are: R.H. Donnelley will issue an additional $300 million of senior notes through subsidiary R.H. Donnelley Finance Corp. III, Dex Media West LLC will reduce its proposed add-on term loan B-1 by $50 million and Dex Media Inc. will no longer issue $250 million in add-on senior unsecured notes.

Moody's said it expects the restructuring will result in only a modest increase in R.H. Donnelley's pro-forma consolidated debt and leverage and a decrease in the pro-forma debt of Dex Media compared to the previously announced financing structure.

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