Research Update: U.S. TelePacific Holdings Corp. Upgraded To 'CCC+' From 'SD', Outlook Negative; New Debt Rated

U.S.-based competitive and cloud communications provider U.S. TelePacific Holdings Corp.(doing business as TPx Communications) completed the exchange of its $655 million senior secured term loan B ($582 million outstanding) due May 2023 for a new senior secured term loan B due May 2026. It also extended the maturity of its $25 million revolving credit facility to November 2025 from May 2022. While TPx's debt burden remains elevated, its liquidity position will benefit from the receipt of a $70 million capital infusion from private-equity sponsor Siris Capital over the next three quarters, including a $40 million upfront payment. We raised our issuer-credit rating on TPx to 'CCC+' from 'SD' (selective default). At the same time, we assigned our 'CCC+' issue-level rating

...- U.S.-based competitive and cloud communications provider U.S. TelePacific Holdings Corp.(doing business as TPx Communications) completed the exchange of its $655 million senior secured term loan B ($582 million outstanding) due May 2023 for a new senior secured term loan B due May 2026. It also extended the maturity of its $25 million revolving credit facility to November 2025 from May 2022. - While TPx's debt burden remains elevated, its liquidity position will benefit from the receipt of a $70 million capital infusion from private-equity sponsor Siris Capital over the next three quarters, including a $40 million upfront payment. - We raised our issuer-credit rating on TPx to '###+' from '##' (selective default). - At the same time, we assigned our '###+' issue-level rating and '4' recovery rating to the company's new $655 million senior secured term loan and $25 million revolver. The '4' recovery rating indicates our expectation for average (30%-50%; rounded estimate: 40%) recovery...

Research Update