S&P rates Mediacom loans BB

Standard & Poor's said it assigned its BB issue-level rating and 2 recovery rating to Mediacom Broadband Group's and Mediacom LLC Group's proposed senior secured term loan A tranches.

The 2 recovery rating indicates an expectation for substantial (70% to 90%; upper end of the range) recovery in the event of a payment default.

The tranches consist of a $153.5 million term loan A due Nov. 15, 2021 at Mediacom LLC and a $151.5 million term loan A due Jan. 15, 2021 at Mediacom Broadband.

S&P expects that proceeds will be used to refinance existing secured debt at each subsidiary. As a result, the BB issue-level rating and 2 recovery rating on the company's existing secured credit facilities at both subsidiaries remain unchanged.

The proposed refinancing will modestly extend debt maturities and lower annual interest expense due to the refinancing of higher cost secured debt, the agency said.

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