S&P affirms Entegra

Standard & Poor's said it affirmed its B+ rating and 1 recovery rating on debt issued in conjunction with Entegra TC LLC's recapitalization in 2007.

The outlook is stable.

The 2007 recapitalization consisted of the formation of a holding company, Entegra Holdings LLC, that is subordinated to intermediate holding company Entegra TC. Entegra TC's rated credit facilities consist of a $450 million second-lien senior term loan due 2014 and a $30 million synthetic revolving credit facility due 2012. The loans sit behind an existing $350 million first-lien letter of credit facility due 2012 and ahead of an $850 million third-lien payment-in-kind senior term facility due 2015.

Entegra TC used the $1.33 billion of proceeds to refinance $675 million of tranche A debt plus accrued interest, to pay related transaction expenses and to make a one-time distribution of $545 million to members.

The agency said the stable outlook reflects its view that current expectations of net revenues and the liquidity available to the company will be sufficient to reduce the size of the second lien over the next three years.

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