Cogeco Communications Inc.'s C$500 Million Senior Secured Notes Rated 'BBB-' (Recovery Rating: '1') - S&P Global Ratings’ Credit Research

Cogeco Communications Inc.'s C$500 Million Senior Secured Notes Rated 'BBB-' (Recovery Rating: '1')

Cogeco Communications Inc.'s C$500 Million Senior Secured Notes Rated 'BBB-' (Recovery Rating: '1') - S&P Global Ratings’ Credit Research
Cogeco Communications Inc.'s C$500 Million Senior Secured Notes Rated 'BBB-' (Recovery Rating: '1')
Published Sep 14, 2021
4 pages (1913 words) — Published Sep 14, 2021
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Abstract:

TORONTO (S&P Global Ratings) Sept. 14, 2021--S&P Global Ratings today said it assigned its 'BBB-' issue-level rating and '1' recovery rating to Cogeco Communication Inc.'s C$500 million senior secured notes. The '1' recovery rating indicates our expectation for very high (90%-100%; rounded estimate: 95%) recovery in the event of a default. Net proceeds of the notes will be used to fund spectrum auction spend, repay existing debt under the term revolving facility, and for general corporate purposes. These senior secured notes rank pari passu with Cogeco's existing senior secured debt. We view the issuance of the new notes as credit neutral and Cogeco would maintain leverage measures close to 3.5x (S&P Global Ratings' adjusted, includes Caisse de dépôt et placement

  
Brief Excerpt:

...September 14, 2021 TORONTO (S&P Global Ratings) Sept. 14, 2021--S&P Global Ratings today said it assigned its '###-' issue-level rating and '1' recovery rating to Cogeco Communication Inc.'s C$500 million senior secured notes. The '1' recovery rating indicates our expectation for very high (90%-100%; rounded estimate: 95%) recovery in the event of a default. Net proceeds of the notes will be used to fund spectrum auction spend, repay existing debt under the term revolving facility, and for general corporate purposes. These senior secured notes rank pari passu with Cogeco's existing senior secured debt. We view the issuance of the new notes as credit neutral and Cogeco would maintain leverage measures close to 3.5x (S&P Global Ratings' adjusted, includes Caisse de dTp(t et placement du QuTbec investment), which is below our downside threshold of the high-3.0x area. Our '##+' long-term issuer credit rating (ICR) and stable outlook on the company are unchanged. Cogeco spent about C$295 million...

  
Report Type:

Ratings Action

Ticker
CCA@CN
Issuer
Cogeco Communications Inc.
Sector
Global Issuers
Country
Canada
Region
Canada
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Cogeco Communications Inc.'s C$500 Million Senior Secured Notes Rated 'BBB-' (Recovery Rating: '1')" Sep 14, 2021. Alacra Store. May 17, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Cogeco-Communications-Inc-s-C-500-Million-Senior-Secured-Notes-Rated-BBB-Recovery-Rating-1-2720674>
  
APA:
S&P Global Ratings’ Credit Research. (). Cogeco Communications Inc.'s C$500 Million Senior Secured Notes Rated 'BBB-' (Recovery Rating: '1') Sep 14, 2021. New York, NY: Alacra Store. Retrieved May 17, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Cogeco-Communications-Inc-s-C-500-Million-Senior-Secured-Notes-Rated-BBB-Recovery-Rating-1-2720674>
  
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