Moody’s rates Windstream, notes B3, loan Ba3

Moody’s Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Windstream Services, LLC in connection with its post-bankruptcy exit financing.

Moody’s also assigned a Ba3 rating to Windstream’s proposed $500 million super-senior revolving credit facility, and a B3 rating to the proposed first-lien debt totaling $2.15 billion, which will be comprised of some combination of a seven-year first-lien term loan and eight-year senior first-lien notes.

“The Ba3 rating on the super-senior revolver reflects its first-priority payment relative to the first-lien term loan and any senior first-lien notes in a default scenario. The B3 rating on the first-lien term loan and senior first-lien notes, at the same level as the CFR, reflects the preponderance of this class of debt in the capital structure,” Moody’s said in a press release.

The outlook is stable.

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