Research Update: Windstream Holdings Inc. Rated 'B-' After Bankruptcy Emergence; Outlook Stable

U.S.-based telecommunications provider Windstream Holdings Inc. is emerging from Chapter 11 bankruptcy with a new capital structure. S&P Global Ratings is assigning a 'B-' issuer credit rating and stable outlook to the company. We are also assigning a 'BB-' issue-level rating and '1+' recovery rating to subsidiary Windstream Services LLC's $500 million first-out senior secured revolving credit facility. The '1+' recovery rating indicates our expectation for full (greater than 100%) recovery in the event of payment default. At the same time, we are assigning a 'B' issue-level rating and '2' recovery rating to Windstream Services LLC's senior secured first-lien credit facility, which will consist of $1.4 billion of notes (issued by Windstream Escrow LLC)and a $750 million term loan B.

... Holdings Inc. is emerging from Chapter 11 bankruptcy with a new capital structure. - S&P Global Ratings is assigning a 'B-' issuer credit rating and stable outlook to the company. - We are also assigning a '##-' issue-level rating and '1+' recovery rating to subsidiary Windstream Services LLC's $500 million first-out senior secured revolving credit facility. The '1+' recovery rating indicates our expectation for full (greater than 100%) recovery in the event of payment default. - At the same time, we are assigning a 'B' issue-level rating and '2' recovery rating to Windstream Services LLC's senior secured first-lien credit facility, which will consist of $1.4 billion of notes (issued by Windstream Escrow LLC)and a $750 million term loan B. The '2' recovery rating indicates our expectation for meaningful (70%-90%; rounded estimate: 70%) in the event of payment default. - The stable outlook reflects our view that although weak economic conditions...

Research Update