Fitch cuts Trilogy secured notes

Fitch Ratings said it lowered the rating on Trilogy International Partners, LLC’s $350 million senior secured notes to CCC+/RR4 from B-/RR3.

The downgrade is due to $50 million of new senior secured notes at Trilogy International South Pacific LLC, structurally senior to the $350 million senior secured notes, Fitch said.

“The notes transaction created a first-lien creditor class ahead of the existing $350 million senior secured notes following noteholder consent approval of greater than 75% in principal amount. As such, the recovery prospects for the $350 million secured notes have been diminished, resulting in a one-notch downgrade of the $350 million secured notes to CCC+/RR4,” Fitch said in a press release.

Noteholders also authorized amendments to the indenture governing the secured notes to permit TIP Inc.'s operating subsidiary in Bolivia, NuevaTel, to be sold for noncash consideration, subject to specific terms, the agency said.

Fitch also affirmed the issuer default ratings of Trilogy International Partners, and Trilogy International Partners Inc. at CCC+.

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