Moody's rates Eschelon notes B3

Moody's Investors Service said it assigned a provisional B3 rating to Eschelon Operating Co.'s $150 million shelf registration and up to $45 million in proposed senior second-lien secured notes to be issued under the shelf.

Moody's also confirmed Eschelon's B3 corporate family rating, B3 senior second-lien secured notes rating and SGL-3 speculative grade liquidity rating. The outlook is stable.

The confirmation concludes the review of the company's debt begun on Feb. 3 following the company's announcement that it was acquiring Oregon Telecom Inc. for $20 million in cash. The review concluded that Eschelon's plan to finance the acquisition did not meaningfully alter the company's credit profile in the near term and the company's successful history of integrating acquisitions fits well with its strategy to attain synergies from Oregon Telecom's operations, generate meaningful cost reductions and drive sustainable cash flow growth, the agency said.

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