S&P rates Windstream Regatta B+, loan BB, notes B-

Standard & Poor's said it assigned its B+ corporate credit rating to Windstream Regatta Holdings Inc., owner of Windstream Yellow Pages, Inc., whose name is expected to change to Local Insight Yellow Pages, Inc., after the transaction closes.

The outlook is stable.

At the same time, S&P said it assigned its loan and recovery ratings to Windstream's proposed $86 million senior secured credit facilities, consisting of a $20 million revolving credit facility and a $66 million term loan.

The revolving facility and the term loan were both rated BB, two notches higher than the corporate credit rating on Windstream, with recovery ratings of 1, the agency noted.

Additionally, the agency said it assigned its B- rating to Windstream's proposed $217 million senior subordinated notes, adding that proceeds from the credit facilities and notes will be used to finance the purchase of Windstream Yellow Pages by investment funds of Welsh, Carson, Anderson and Stowe, pay for fees and expenses and for general corporate purposes.

The agency said that the ratings on Windstream Yellow Pages reflect our expectation that debt leverage, as measured by total debt to EBITDA, over time will be managed close to levels permitted under its proposed bond indenture.

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