Moody's: Primus unchanged

Moody's Investors Service said Primus Telecommunications Group, Inc.'s B3 corporate family rating and stable outlook remain unchanged following the company's recent announcement that it has entered into an equity purchase agreement to sell its North American telecom segment to affiliates of York Capital Management for $129 million. Primus expects the deal to close in the second half of this year.

The sale follows the April 17 announcement that Primus had sold its data center business to Rogers Communications Inc. for C$200 million. Following the close of these two divestitures, Primus will have no continuing operations and more than $275 million of cash and $128 million of senior secured debt.

Moody's expects Primus to repay all existing debt with the sale proceeds, at which time it will withdraw all of Primus' ratings.

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