S&P rates Xplornet loans B-, CCC

S&P said it assigned B- issue-level rating and 3 recovery ratings to Xplornet Communications Inc.'s planned first-lien debt, consisting of a C$150 million revolving credit facility and a seven-year U.S.-dollar term loan

The agency also gave CCC issue-level and 6 recovery ratings to the company's expected eight-year, second-lien term loan (equivalent of C$350 million).

The 3 recovery rating on the first-lien debt indicates meaningful (50%-70%; rounded estimate: 55%) recovery, and the 6 recovery rating on the second-lien debt indicates negligible (0%-10%; rounded estimate: 0%) recovery in default.

Xplornet will use the proceeds and about C$52 million of equity from Stonepeak Infrastructure Partners, to repay the existing first-lien term loan and borrowings under the RCF, fund spectrum auction spending of about C$175 million, fund tuck-in acquisitions and for other general corporate purposes.

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