MetroNet Holdings LLC 'B' First-Lien Term Loan Rating Affirmed On Proposed $100 Million Add-On (Recovery Rating: '2')

NEW YORK (S&P Global Ratings) Aug. 27, 2020--S&P Global Ratings today affirmed its 'B' issue-level rating, with a '2' recovery rating, on Evansville, Ind.-based fiber broadband operator MetroNet Holdings LLC's first-lien debt following the company's proposed $100 million incremental add-on to its $240 million term loan B due in 2026. The '2' recovery rating indicates our expectation of substantial (70%-90%; rounded estimate: 80%) recovery in the event of a payment default. We expect the company to use the $100 million in proceeds from the upsized term loan B to fully repay the $55 million balance on its $103 million revolving credit facility, return cash to the balance sheet, and fund future capital expenditures. Despite the incremental first-lien debt, recovery prospects

...August 27, 2020 NEW YORK (S&P Global Ratings) Aug. 27, 2020--S&P Global Ratings today affirmed its 'B' issue-level rating, with a '2' recovery rating, on Evansville, Ind.-based fiber broadband operator MetroNet Holdings LLC's first-lien debt following the company's proposed $100 million incremental add-on to its $240 million term loan B due in 2026. The '2' recovery rating indicates our expectation of substantial (70%-90%; rounded estimate: 80%) recovery in the event of a payment default. We expect the company to use the $100 million in proceeds from the upsized term loan B to fully repay the $55 million balance on its $103 million revolving credit facility, return cash to the balance sheet, and fund future capital expenditures. Despite the incremental first-lien debt, recovery prospects for first-lien lenders are relatively unaffected due to an increase in our default valuation. We are raising our default valuation to $390 million from $275 million, primarily reflecting the acquisition...

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