MetroNet Holdings LLC 'B' First-Lien Debt Rating Affirmed On Proposed $150 Million Incremental Term Loan Add-On

NEW YORK (S&P Global Ratings) Feb. 11, 2021--S&P Global Ratings today affirmed its 'B' issue-level rating on Evansville, Ind.-based fiber broadband operator MetroNet Holdings LLC's first-lien debt following the company's proposed $150 million incremental add-on to its $340 million term loan B due 2026. The '2' recovery rating remains unchanged, indicating our expectation for substantial (70%-90%; rounded estimate: 70%) recovery in the event of a payment default. We expect the company to use the $150 million of proceeds from the add-on to fully repay the outstanding $70 million balance on its $103 million revolving credit facility, add cash to its balance sheet, and fund future capital expenditure. Despite the incremental first-lien debt, we believe the recovery prospects for its first-lien

...February 11, 2021 NEW YORK (S&P Global Ratings) Feb. 11, 2021--S&P Global Ratings today affirmed its 'B' issue-level rating on Evansville, Ind.-based fiber broadband operator MetroNet Holdings LLC's first-lien debt following the company's proposed $150 million incremental add-on to its $340 million term loan B due 2026. The '2' recovery rating remains unchanged, indicating our expectation for substantial (70%-90%; rounded estimate: 70%) recovery in the event of a payment default. We expect the company to use the $150 million of proceeds from the add-on to fully repay the outstanding $70 million balance on its $103 million revolving credit facility, add cash to its balance sheet, and fund future capital expenditure. Despite the incremental first-lien debt, we believe the recovery prospects for its first-lien lenders are relatively unaffected due to the increase in our default valuation under our simulated default scenario. We are raising our default valuation of MetroNet to $440 million...

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