New York, December 22, 2015 -- Moody's Investors Service, ("Moody's") has downgraded the Corporate Family Rating ("CFR") of Cequel Communications Holdings I, LLC ("Cequel") two notches to B3 following the announcement by the Federal Communications Commission ("FCC") that it approved the acquisition of a majority equity interest in Cequel by Altice Luxembourg S.A ("Altice") and the transaction closed on December 21, 2015. The original agreement was struck on May 20, 2015 and valued Cequel at $9.2 billion, or approximately 10x EBITDA. Moody's has downgraded Cequel's secured credit facility rating one notch to Ba3, as well Cequel's unsecured notes rating to Caa1, from B3. The outlook is stable. Altice had previously issued approximately $2.2 billion of new debt at various financing escrow entities, including the Ba3 senior secured debt at Altice US Finance I Corporation, and Caa1 senior unsecured debt at Altice Finance II Corporation. They have been assumed by Cequel Communications, LLC and Cequel Communications Holdings I, LLC, respectively at the closing of the transaction. The company's speculative-grade liquidity ("SGL") rating is maintained at SGL-2. Also, the B3 CFR, B3-PD and stable outlook at Altice US Holding I S.a.r.l. have been withdrawn. This rating action concludes the review for downgrade initiated on May 20, 2015.
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