S&P: U.S. TelePacific on positive watch

Standard & Poor's said it placed its CCC+ corporate credit rating on U.S. TelePacific Holdings Corp. on Creditwatch with positive implications.

The agency said it also assigned a CCC+ issue-level rating and a five recovery rating to the company's proposed $25 million senior secured revolver and $360 million term loan due 2015.

Net proceeds of $360 million will be used to repay its existing $322 million credit facility, add about $14 million of cash to the balance sheet, and pay $24 million in related fees and expenses, S&P added.

"Upon successful completion of the proposed financing and assuming that financial maintenance covenants provide the company with sufficient headroom," said S&P credit analyst Allyn Arden, "we will raise the corporate credit rating to B- from CCC+."

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