Moody's may cut R.H. Donnelley, Dex Media

Moody's Investors Service said it placed all ratings of R. H. Donnelley Inc. and Dex Media, Inc. on review for possible downgrade.

Ratings placed on review for possible downgrade include R.H. Donnelley Inc.'s $175 million senior secured revolving credit facility due 2009 at Ba3, $544 million senior secured tranche A term loan due 2009 at Ba3, $1.433 billion senior secured tranche D term loan due 2011 at Ba3, $325 million 8 7/8% senior notes due 2010 at Ba3 and $600 million 10 7/8% subordinated notes due 2012 at B2. Moody's also put on review for downgrade R.H. Donnelley Corp.'s $300 million senior unsecured notes due 2013 at B3 and corporate family rating of Ba3.

Also in review are Dex Media, Inc.'s $570 million 9% senior discount notes due 2013 at B3, $500 million 8% cash pay unsecured notes due 2013 at B3 and corporate family rating of Ba3; Dex Media East LLC's $916 million senior secured credit facility at Ba2, $450 million 9.875% senior unsecured notes due 2009 at B1 and $341 million 12.125% senior subordinated notes due 2012 at B2; and Dex Media West LLC's $1.409 billion senior secured credit facility at Ba2, $385 million 8.5% senior unsecured notes due 2010 at B1, $300 million 5 7/8% senior unsecured notes due 2011 at B1 and $762 million 9.875% senior subordinated notes due 2013 at B2.

The rating action follows the companies' announcement that R. H. Donnelley has entered into a definitive agreement to acquire Dex Media, Inc. in a transaction valued at about $9.5 billion, including $2.4 billion in stock, $1.8 billion in cash, and the assumption of about $5.5 billion in Dex's debt.

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