S&P rates Cequel unit’s loans B+, CCC+

S&P said it assigned its B+ issue-level rating and 2 recovery rating to Cequel Data Centers LP subsidiary TierPoint LLC's proposed $175 million senior secured revolving credit facility maturing in 2022 and $700 million senior secured first-lien term loan maturing in 2024. The 2 recovery rating indicates an expectation for substantial (70%-90%; rounded estimate: 70%) recovery for lenders in the event of a payment default.

At the same time, S&P assigned a CCC+ issue-level rating and 6 recovery rating to the company's proposed $220 million senior secured second-lien term loan maturing in 2025. The 6 recovery rating indicates an expectation for negligible (0%-10%; rounded estimate: 0%) recovery for lenders in the event of a payment default.

“The B corporate credit rating and stable outlook on Cequel Data Centers LP remain unchanged because we expect the transaction will be leverage neutral,” S&P said in a news release.

© 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.