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S&P might cut Grande Communications
S&P said it placed its B+ corporate credit rating on Grande Communications Networks LLC on CreditWatch with negative implications.
"The CreditWatch placement follows the announcement that the company's private equity sponsors, ABRY Partners, have agreed to sell Grande and RCN Telecom LLC to TPG Capital for $650 million and $1.6 billion, respectively," S&P credit analyst William Savage said in a news release.
The agency expects the assets of Grande and RCN to be combined into a new entity.
In S&P’s view, the combined debt-to-EBITDA leverage at the new entity will likely be greater than 5 times given private equity sponsorship and debt-to-EBITDA leverage at RCN, which was 5.4 times on March 31.
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