Competitive local exchange carrier U.S. TelePacific has proposed a $460 million credit facility. It plans to use proceeds to, among other things, refinance existing debt and fund the acquisition of Covad Wireless. We are rating the credit facility 'B-' with a recovery rating of '4'. We are also affirming our 'B-' corporate credit rating on the company. The stable rating outlook reflects our expectations for modestly improving operating trends, including lower churn, over the next year. On Feb. 15, 2011, Standard&Poor's Ratings Services assigned its issue-level and recovery ratings to Los Angeles-based competitive local exchange carrier (CLEC) U.S. TelePacific Corp.'s proposed $460 million senior secured credit facility, consisting of a $25 million revolver and $435 million term loan.
