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Moody's ups WilTel view to developing
Moody's Investors Service said it affirmed all ratings for WilTel Communications LLC following the company's announcement that its ultimate parent, Leucadia National Corp., has entered into a definitive agreement to sell WilTel to Level 3 Communications, Inc. for 115 million shares of Level 3 common stock and $370 million of cash.
Rating affirmed include the B3 corporate family rating, B2 $25 million revolving senior secured credit facility due 2009, B2 $260 million first-priority senior secured term loan due 2010 and Caa1 $100 million second-priority senior secured term loan due 2011.
Moody's has changed the outlook to developing from negative.
As part of the transaction, Leucadia will retain the bank debt along with certain assets of WilTel that will not be included in the sale to Level 3, Moody's said.
Therefore, Moody's said it expects that Leucadia will fully repay the bank debt principal, which it must do in order to transfer assets to Level 3, and terminate the credit agreement prior to the closure of the merger transaction.
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