Moody's: Consolidated notes B3, loans up to Ba3

Moody's Investors Service said it assigned a B3 rating to the proposed $350 million senior unsecured note offering for Consolidated Communications Finance Co. and affirmed the existing B1 corporate family rating.

The facility rating of the existing senior secured term loan and revolver have been upgraded to Ba3 from B1 to reflect the addition of $350 million of debt that is subordinated to the secured bank debt in the capital structure.

The probability of default rating was also upgraded to B1 from B2 due to the addition of unsecured debt.

Proceeds of the note offering, along with cash on the balance sheet and additional equity issuance, will fund the acquisition of SureWest Communications.

The outlook remains stable.

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