Moody’s: Consolidated Communications unchanged

Moody's Investors Service said that Consolidated Communications Holdings, Inc.’s announcement that it plans to merge with Enventis Corp. in an all-stock transaction valued at $350 million, including $123 million of Enventis' net debt as of March 31, does not impact its B1 corporate family rating or stable outlook.

Moody's considers the merger with Enventis to be credit positive for Consolidated Communications due to the modest improvement in leverage.

However, the agency said the all-stock deal will increase Consolidated Communications' already high common dividend and result in a slight deterioration in free cash flow until merger synergies are realized.

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