Fitch assigns Pacnet notes BB+

Fitch Ratings said it assigned Pacnet Ltd. a long-term foreign currency issuer default rating of B+.

The outlook is stable.

Fitch said it has also assigned an expected BB+ rating and an expected RR1 recovery rating to the proposed $300 million of five-year senior secured guaranteed notes due to be issued by Pacnet.

The agency stated that Pacnet plans to use the proceeds from the notes firstly to repay fully its existing secured term loan facility and, together with a potential bank loan of $50 million as additional liquidity, to finance capex related to its submarine cable networks and to pay dividends to its shareholders.

Pacnet's ratings reflect its ownership of a submarine transmission network which spans all major Asia Pacific markets and provides the company with competitive and defensive advantages for its business of selling network capacity and internet connectivity to telecom carriers, Fitch said.

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