Bulletin: Radiate Holdco LLC's Acquisition Of WideOpenWest Assets Limits Rating Flexibility

NEW YORK (S&P Global Ratings) July 1, 2021--S&P Global Ratings today said Radiate Holdco LLC's recently announced acquisition of assets from WideOpenWest limits flexibility in the rating on Radiate (B/Stable/--) over the next one to two years, as this acquisition comes on the heels of a debt-financed dividend in September 2020. Still, given favorable industry fundamentals and predictable EBITDA growth, we do not expect leverage to remain elevated above our 7x downgrade trigger for a prolonged period. We expect debt to EBITDA will continue to follow a saw-tooth pattern over the next year, briefly declining below 7x (from 7.1x for the LTM ended March 31, 2021) before rising by about 0.3x (including a full year's worth of EBITDA) when the

...July 1, 2021 NEW YORK (S&P Global Ratings) July 1, 2021--S&P Global Ratings today said Radiate Holdco LLC's recently announced acquisition of assets from WideOpenWest limits flexibility in the rating on Radiate (B/Stable/--) over the next one to two years, as this acquisition comes on the heels of a debt-financed dividend in September 2020. Still, given favorable industry fundamentals and predictable EBITDA growth, we do not expect leverage to remain elevated above our 7x downgrade trigger for a prolonged period. We expect debt to EBITDA will continue to follow a saw-tooth pattern over the next year, briefly declining below 7x (from 7.1x for the LTM ended March 31, 2021) before rising by about 0.3x (including a full year's worth of EBITDA) when the WoW acquisition is expected to close in the second half of 2021. Despite the modest increase in leverage, we believe demand for high-speed internet will result in mid- to high-single-digit annual EBITDA growth such that debt to EBITDA will be...

Bulletin