Moody's upgrades PR Wireless, rates loans Caa1

Moody's Investors Service said it upgraded PR Wireless, Inc.’s corporate family rating to Caa1 from Caa3, upgraded its probability of default rating to Caa1-PD from Caa3-PD and assigned Caa1 ratings to its $190 million senior secured credit facilities, which consist of a $10 million revolving credit facility due 2019 and a $180 million term loan due 2020. The outlook was changed to stable from negative.

The loan proceeds will be used to repay existing debt.

The agency said the upgrade was prompted by PR Wireless' improved liquidity and debt profile following the issuance of the new credit facilities. Pro forma for the refinancing, the company will have only $2.9 million of debt maturing during the next two years.

Despite the improvements, the company’s liquidity position remains tight, Moody’s said, and its Caa1 ratings reflect its small operating scale and market share when compared to larger and better-funded competitors.

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