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

U.S.-based competitive local exchange carrier and cloud communications provider U.S. TelePacific Holdings Corp. (doing business as TPx Communications) completed the exchange of its $655 million super-priority credit facility ($639 million outstanding) due 2026 as well as $19 million of its existing revolving credit facility due 2025 for a new debt structure that consists of three separate tranches. While TPx's debt burden will increase due to the addition of $103 million in total debt as a result of this transaction, its liquidity position will benefit modestly from the receipt of a $65 million capital infusion from private-equity sponsor Siris Capital at close. We raised our issuer credit rating on TPx to 'CCC' from 'SD' (selective default). At the same time, we

...- U.S.-based competitive local exchange carrier and cloud communications provider U.S. TelePacific Holdings Corp. (doing business as TPx Communications) completed the exchange of its $655 million super-priority credit facility ($639 million outstanding) due 2026 as well as $19 million of its existing revolving credit facility due 2025 for a new debt structure that consists of three separate tranches. - While TPx's debt burden will increase due to the addition of $103 million in total debt as a result of this transaction, its liquidity position will benefit modestly from the receipt of a $65 million capital infusion from private-equity sponsor Siris Capital at close. - We raised our issuer credit rating on TPx to '###' from '##' (selective default). - At the same time, we assigned a '###' issue-level rating and '3' recovery rating to the company's new $332 million first-lien credit facility and a '##' issue-level rating and '6' recovery rating to its new $33 million third-lien credit facility....

Research Update