Newly formed U.S. cable operator Radiate Holdco LLC (Radiate) plans to acquire RCN Telecom Services LLC (RCN) and Grande Communications Networks LLC (Grande) for $2.25 billion, funded mostly with debt, and resulting in pro-forma debt to EBITDA of about 6.5x. We are assigning our 'B' corporate credit rating and stable outlook to Radiate. We are also assigning our 'B' issue-level rating and '3' recovery rating to the company's proposed $1.33 billion senior secured term loan due 2023 and $150 million revolver due 2021. In addition, we are assigning our 'CCC+' issue-level rating and '6' recovery rating to the company's proposed $495 million senior unsecured notes due 2024. The stable outlook reflects our belief that the company will gradually de-leverage from
