GCI LLC's Proposed $350 Million Unsecured Notes Rated 'B'; Rating Placed On CreditWatch Positive (Recovery Rating: '2')

NEW YORK (S&P Global Ratings) Sept. 23, 2020--S&P Global Ratings today assigned its 'B' issue-level rating and '2' (capped) recovery rating to Alaska-based diversified telecommunications provider GCI LLC's proposed $350 million of senior unsecured notes due in 2028. We subsequently placed the rating on CreditWatch with positive implications, in line with the existing unsecured debt. The '2' recovery rating indicates our expectation of substantial (70%-90%; rounded estimate: 85%) recovery in the event of a payment default. Proceeds, together with the recent $114 million term loan B add-on and $9 million in cash, will fund the redemption of the company's existing $450 million of 6.875% senior unsecured notes due in 2025, as well as pay a $15 million call premium and

...September 23, 2020 NEW YORK (S&P Global Ratings) Sept. 23, 2020--S&P Global Ratings today assigned its 'B' issue-level rating and '2' (capped) recovery rating to Alaska-based diversified telecommunications provider GCI LLC's proposed $350 million of senior unsecured notes due in 2028. We subsequently placed the rating on CreditWatch with positive implications, in line with the existing unsecured debt. The '2' recovery rating indicates our expectation of substantial (70%-90%; rounded estimate: 85%) recovery in the event of a payment default. Proceeds, together with the recent $114 million term loan B add-on and $9 million in cash, will fund the redemption of the company's existing $450 million of 6.875% senior unsecured notes due in 2025, as well as pay a $15 million call premium and $8 million in estimated fees and expenses. We intend to resolve the CreditWatch placement after Liberty Broadband acquires GCI Liberty (the parent of GCI LLC), most likely in the first half of 2021. The CreditWatch...

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