Moody's assigns Caa1 to Total Play notes

Moody's Ratings said it assigned a Caa1 rating to Total Play Telecomunicaciones, SAPI de CV's planned up to $361.5 million in backed senior secured global notes due 2028.

Total Play's other ratings, including its Caa1 corporate family rating and the Caa2 rating of its backed senior unsecured global notes due 2025 and 2028, and negative outlook remain unchanged, the agency said.

The new notes are offered in exchange for Total Play's 7˝% senior unsecured notes due 2025 rated Caa2. The new notes will have a 10˝% coupon and amortization payments beginning in 2026 (20% of principal payable in 2026, 30% in 2027 and 50% in 2028).

The exchange also includes a consent solicitation to amend the 2025 senior unsecured notes indenture to remove substantially all restrictive covenants.

“Moody's views the proposed exchange to be a distressed exchange under its criteria, as pushing the maturity date beyond the November 2025 bond maturity in a tight funding environment represents default avoidance and an economic loss relative to the original promise to pay,” the agency said in a press release.

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