Moody's rates Fibertech add-on loan B2

Moody's Investors Service said it rated Fibertech Networks, LLC's new add-on senior secured bank credit facility B2.

At the same time, the company's corporate family rating and probability of default rating were affirmed at B2 and B2-PD, respectively. The ratings on the existing senior secured bank credit facility were also affirmed at B2.

The outlook continues to be stable.

The proceeds from the new $135 million add-on term loan to the existing senior secured credit facility, comprised of a $50 million revolving term loan a $380 million term loan B, together with cash on hand, will fund a special dividend of $159 million.

Although the dividend recapitalization is credit negative, because pro-forma leverage will be about 4.7x (on Moody's fully adjusted basis), which is roughly the same as prevailed a year ago when Fibertech competed a dividend recapitalization to fund a $159 million special dividend, the transaction is neutral to Fibertech's ratings.

Accordingly, the corporate family rating and probability of default rating were affirmed and the new add-on term loan was rated at the same B2 level as the existing facility Moody's said.

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