Moody's cuts Northwest Fiber

Moody's Investors Service said it downgraded Northwest Fiber, LLC's corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD, first-lien senior secured credit facilities, comprised of a $100 million revolver and $500 million term loan B due 2027, to B1 from Ba3 and $550 million of senior unsecured notes to Caa2 from Caa1. Moody's assigned a B1 to Northwest Fiber's planned $275 million of senior secured notes due 2027.

“Northwest Fiber's B3 CFR reflects weaker than expected EBITDA growth trends partly attributable to permitting and construction and elevated debt leverage (Moody's adjusted) given the company's pivot to a more ambitious business model and capital investing strategy,” the agency said in a press release.

The company will use the proceeds for general corporate purposes and to fund early stage capital investments in new greenfield network expansions mainly in markets in Washington and Oregon contiguous to the company's footprint.

The outlook is stable.

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