| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers R > Headlines for R.H. Donnelley Corp. > News item |
S&P rates R.H. Donnelley loan, Dex loan BB
Standard & Poor's said it affirmed its ratings on Dex Media Inc. and its operating subsidiaries, including the BB- corporate credit ratings, BB senior secured rating, B senior unsecured debt rating and B subordinated debt rating.
In addition, S&P assigned BB ratings with recovery ratings of 1 to R.H. Donnelley Inc.'s proposed $2.2 billion senior secured credit facility and Dex West's proposed $1.7 billion senior secured credit facility.
S&P said it also removed the ratings from CreditWatch with negative implications, where they were placed on Oct. 3 following R.H. Donnelley Corp.'s announcement it would acquire Dex for $4.2 billion plus the assumption of debt totaling $5.4 billion as of September.
R.H. Donnelley ratings remain on CreditWatch with negative implications, including its BB corporate credit rating and B+ senior unsecured debt rating.
The outlook is stable for the Dex entities.
Proceeds from the new credit facilities will be used to partially finance the Dex acquisition, to redeem $332 million of Dex's remaining preferred shares outstanding from partnerships affiliated with the Goldman Sachs Group and to refinance existing debt.
Ratings reflect R.H. Donnelley's substantial pro forma debt levels totaling about $10.8 billion as of September, attributable to the current acquisition, significant acquisitions over the past few years at both R.H. Donnelley and Dex, as well as material dividend payments at the former and preferred share redemptions at the latter, the agency said.
S&P said this is offset somewhat by R.H. Donnelley's strong market positions, predictable sales and cash flow levels and geographic and customer diversity.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.