...February 22, 2024 TORONTO (S&P Global Ratings) Feb. 22, 2024--S&P Global Ratings today assigned its '##+' issue-level rating and '3' recovery rating to Cogeco Communications Inc.'s proposed C$275 million senior unsecured notes. The '3' recovery rating indicates our expectation for meaningful recovery (50-70%; rounded estimate: 65%) in a simulated default scenario. The notes will rank junior in right of payment relative to the company and guarantor's existing and future secured senior debt. Our '##+' issuer credit rating and negative outlook on Cogeco are unchanged. The company will use the proceeds from this issuance to pay down outstanding borrowings under its revolving credit facility, repay bank debt, and for general corporate purposes. Cogeco's pro forma debt to EBITDA on S&P Global Ratings-adjusted basis proforma for Rogers Communications related share buyback transaction remains elevated at 3.8x based on the 12 months ended November 2023 EBITDA. We expect the company's leverage will...
