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S&P rates Mediacom loan BB
Standard & Poor’s said it assigned a BB rating and 2 recovery rating to Mediacom Broadband Group’s proposed $250 million term loan I due 2017 and $250 million term loan J due 2021.
The 2 recovery rating indicates 70% to 90% expected default recovery.
The issuer is a subsidiary of Mediacom Communications Corp. The proceeds, along with revolver borrowings, will be used to repay the remaining balance on the company’s term loan D due Jan. 31, 2015.
As a result, the agency said it expects adjusted leverage to remain unchanged while interest expense will increase modestly due to the refinancing of lower cost debt, S&P said.
Under the base-case scenario, the agency said it believes consolidated adjusted leverage for Mediacom Communications will decline to the low-5x range in 2014 from about 5.4x in 2013 based on EBITDA growth and potential debt repayment.
All other ratings on Mediacom, including its BB- corporate credit rating on parent Mediacom Communications, are unaffected.
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