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Moody's rates US Unwired notes
Moody's Investors Service said it assigned a B2 rating to the proposed first-priority senior secured notes and a Caa1 to the second-priority senior secured notes of US Unwired Inc. Moody's also confirmed the company's senior implied rating of B3 and improved the outlook to stable from negative.
Specifically, Moody's lowered the issuer rating to Caa2 from Caa1 and $96 million face amount of 13.375% senior subordinated notes due 2009 Caa3 from Caa2. Moody's assigned a B2 rating to the $125 million first-priority senior secured floating-rate notes due 2010 and a Caa1 rating to the $160 million second-priority senior secured notes due 2012.
The B3 senior implied rating reflects the continued high leverage of the company even after the pending refinancing, as Moody's expects free cash flow be a low- to mid- single digit percentage of total debt, and total debt per subscriber to remain above $800. The stable rating outlook reflects Moody's opinion that while operational challenges remain, US Unwired has comfortably reduced its near-term financial risks through this refinancing, and that the company has adequate liquidity to meet its obligations over the medium-term.
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