Mega Broadband Investments Intermediate I LLC Assigned 'B+' Rating, Outlook Stable; Debt Ratings Assigned

U.S.-based internet and cable TV provider Mega Broadband Investments Intermediate I LLC (d/b/a Vyve Broadband) plans to raise $725 million of senior secured credit facilities and use $8 million in balance sheet cash to refinance $535 million in existing indebtedness, fund a $102 million dividend, and pay $21 million of fees, resulting in pro forma debt to EBITDA of about 6x. S&P Global Ratings is assigning its 'B+' issuer credit rating to the company, which reflects Vyve's favorable incumbent market position and incentives for minority investor Cable One to provide financial support if necessary, offset by elevated financial leverage, low penetration rates and control by a private-equity sponsor. We are also assigning our 'B+' issue-level and '3' recovery ratings to

...October 15, 2020 - U.S.-based internet and cable TV provider Mega Broadband Investments Intermediate I LLC (d/b/a Vyve Broadband) plans to raise $725 million of senior secured credit facilities and use $8 million in balance sheet cash to refinance $535 million in existing indebtedness, fund a $102 million dividend, and pay $21 million of fees, resulting in pro forma debt to EBITDA of about 6x. - S&P Global Ratings is assigning its 'B+' issuer credit rating to the company, which reflects Vyve's favorable incumbent market position and incentives for minority investor Cable One to provide financial support if necessary, offset by elevated financial leverage, low penetration rates and control by a private-equity sponsor. - We are also assigning our 'B+' issue-level and '3' recovery ratings to the proposed senior secured debt facilities, consisting of $75 million revolving credit facility due 2025 and a $650 million term loan B due 2027. The '3' recovery rating reflects our expectation of 50%-70%...

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