Moody’s rates FirstLight loans B2

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to TVC Albany, Inc., which does business as FirstLight Fiber, and a B2 (LGD3) rating to the company's proposed senior secured credit facility, which is comprised of a $275 million seven-year term loan B and a $25 million five-year revolver. The outlook is stable.

The proceeds from the credit facilities will be used to acquire Finger Lakes Technologies Group and 186 Communications. The ratings reflect Moody's view of the pro forma entity.

The agency said FirstLight's B3 corporate family rating is supported by a solid recurring revenue model, low churn and the potential for solid organic growth due to the strong demand characteristics of the fiber infrastructure market.

The rating also reflects FirstLight's small scale, high leverage, weak free cash flow and execution and integration risks associated with the acquisition of Finger Lakes and 186, Moody’s said.

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