Moody's: TVC Albany unchanged after tack-on

Moody's Investors Service said the B3 corporate family rating on TVC Albany, Inc., which does business as FirstLight Fiber, is unchanged following its anticipated $30 million add-on to its first-lien term loan.

The proceeds will be used to repay outstanding borrowings under the company's revolver, fund capital investment and provide borrowing capacity for additional fiber-to-the-tower network expansion opportunities with wireless carriers, Moody's said.

While this transaction has negative credit implications, including higher leverage and increased interest expense burden, FirstLight's credit profile and current rating can absorb these additional negative pressures, the agency said.

Further, incremental capital spending will contribute to revenue and EBITDA growth upon completion of network expansion projects, Fitch said.

FirstLight's growing network footprint also will benefit the company's competitive positioning on potential future bids with wireless carriers for fiber-to-tower networks, the agency said.

The ratings are supported by a solid recurring revenue model, low churn and solid organic growth potential due to the strong demand characteristics of the fiber infrastructure market, Moody's said.

The company benefits from sizable on-net enterprise revenue, revenue diversity and a growing fiber-to-tower business, the agency said.

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