Moody's rates ViaWest loans B2

Moody's Investors Service said it assigned a B2 corporate family rating and B3-PD probability of default rating to ViaWest, Inc.

As part of the action, Moody's assigned a B2 (LGD3-35%) rating to the company's $326 million senior secured first-lien term loan and $35 million senior secured revolver.

The proceeds from the $120 million add-on to the existing $206 million term loan will be used to refinance existing mezzanine debt and for general corporate purposes.

The outlook is negative due to ViaWest's high leverage, which has remained elevated due to its history of debt-financed capital spending.

Moody's said ViaWest's B2 rating reflects its small scale, weak free cash flow profile and high capital intensity, which could require the company to continue to take on additional debt.

These limiting factors are offset by Viawest's stable base of contracted recurring revenues, its position in smaller markets with less intense competitive dynamics and the currently strong market demand for colocation services, the agency 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.