Moody's rates tw telecom notes B1

Moody's Investors Service said it assigned B1 (LGD4-67%) ratings to $800 million of proposed senior unsecured notes to be issued by tw telecom holdings inc., a wholly owned subsidiary of tw telecom inc.

The proceeds from the offering will be used to refinance the company's existing 8% 2018 notes and for general corporate purposes, including its expanded share repurchase program.

The higher debt load resulting from this transaction will temporarily stress tw telecom inc.'s credit metrics beyond the limit of the current Ba3 corporate family rating and dramatically reduce the company's financial flexibility. tw telecom inc.'s aggressive debt-financed share repurchase activity suggests a departure from its prior conservative capital allocation philosophy and implies higher long-term credit risk, the agency said.

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