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Moody’s: TierPoint unaffected
Moody’s Investors Service said TierPoint LLC’s ratings are unaffected following its Oct. 19 announcement that entered into a definitive agreement with Windstream to acquire Windstream's data center business in an all-cash transaction for $575 million, though it views it as credit negative.
The deal is expected to close within the next two to four months.
Funding for the transaction has not been disclosed, though the agency anticipates the deal will be funded with a combination of debt and equity.
Moody's views the transaction as credit negative because credit metrics will likely deteriorate in the short-term. Leverage is expected to increase from the debt undertaken to fund the deal, and free cash flow will remain negative due to the high capital intensity of the data center industry.
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