Moody's rates Cequel notes B3

Moody's Investors Service said it assigned a B3 rating to the proposed $500 million issuance of 8 5/8% senior unsecured notes due 2017 by Cequel Communications Holdings I, LLC. The agency also said it assigned a corporate family rating of B1 and probability of default rating of B1, along with a B3 rating on its existing unsecured notes due 2017.

Net proceeds from the issuance will be applied toward the repayment of subsidiary Cequel Communications, LLC's second-lien credit facilities and for fees and expenses. The new note issuance is an add-on to Cequel's existing 8 5/8% senior unsecured notes due 2017.

Moody's said it will withdraw the existing B3 ratings for Cequel's second-lien term loans upon repayment of the debt.

Cequel Communications, LLC's senior secured first-lien credit facilities due 2013 are Ba3 with LGD 3, 32% from LGD 3, 31%, the agency said.

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