Moody's rates tw telecom notes B2

Moody's Investors Service said it assigned a B2 rating (LGD4, 63%) to the proposed $430 million eight-year senior unsecured notes offering at tw telecom holdings inc., a wholly owned subsidiary of tw telecom inc.

The B1 corporate family and probability-of-default ratings, and SGL-1 liquidity rating were affirmed.

The outlook remains stable.

Proceeds will be used to refinance $400 million of senior unsecured notes.

The extended maturity of a significant portion of its debt will enhance the company's already very good liquidity, the agency noted.

The corporate family rating reflects the company's track record of strong operating performance driven by the revenue growth in the enterprise segment and its enhanced operating scale following the acquisition of Xspedius in 2006, according to the agency.

The rating is tempered by elevated levels of capital spending, high leverage and challenging competitive position, Moody's said.

© 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.