Research Update: CCI Buyer Inc. Ratings Affirmed On Announced Debt Add-Ons To Fund A Dividend To Its Financial Sponsor, Outlook Stable

U.S.-based mobile virtual network operator (MVNO) CCI Buyer Inc. (doing business as Consumer Cellular) plans to pay a $1.1 billion dividend to its private-equity sponsor, GTCR LLC, using the proceeds from a tack-on $872 million senior secured first-lien term loan ($2.0 billion total), a $95 million senior secured second-lien term loan ($395 million total), $85 million of preferred equity ($311 million total), and about $75 million of cash from its balance sheet. Consumer Cellular is also seeking to extend the maturity of its revolving credit facility by one year to 2026. The proposed transaction will increase the company's S&P Global Ratings-adjusted leverage to about 8.1x by year-end 2022 from 6.1x in 2021. However, this level of pro forma leverage is

...- U.S.-based mobile virtual network operator (MVNO) CCI Buyer Inc. (doing business as Consumer Cellular) plans to pay a $1.1 billion dividend to its private-equity sponsor, GTCR LLC, using the proceeds from a tack-on $872 million senior secured first-lien term loan ($2.0 billion total), a $95 million senior secured second-lien term loan ($395 million total), $85 million of preferred equity ($311 million total), and about $75 million of cash from its balance sheet. Consumer Cellular is also seeking to extend the maturity of its revolving credit facility by one year to 2026. - The proposed transaction will increase the company's S&P Global Ratings-adjusted leverage to about 8.1x by year-end 2022 from 6.1x in 2021. However, this level of pro forma leverage is about same as when Consumer Cellular was acquired by GTCR in December 2020. - We therefore affirmed our 'B-' issuer-credit rating on the company - We also affirmed our 'B-' issue-level rating on its senior secured first-lien debt, and...

Research Update