Research Update: Windstream Holdings Inc. Rating Lowered To 'SD' From 'CC' On Distressed Debt Exchange; Debt Ratings Lowered

U.S.-based telecommunications provider Windstream Holdings Inc. has exchanged about $1 billion in face value of subsidiary Windstream Services LLC's 7.75% senior notes due in 2021, 7.5% senior notes due in 2022, 7.5% senior notes due in 2023, 6.375% senior notes due in 2023, and 8.75% senior notes due in 2024 at a discount to par. We are lowering our issuer credit rating on Windstream to 'SD' (selective default) from 'CC'. We are also lowering the issue-level rating on certain of Windstream's senior unsecured notes that were exchanged at a discount to 'D' from 'C'. At the same time, we are placing the 'B+' issue-level rating on Windstream Services' and Windstream Holding of the Midwest's senior secured debt on CreditWatch with

... Holdings Inc. has exchanged about $1 billion in face value of subsidiary Windstream Services LLC's 7.75% senior notes due in 2021, 7.5% senior notes due in 2022, 7.5% senior notes due in 2023, 6.375% senior notes due in 2023, and 8.75% senior notes due in 2024 at a discount to par. + We are lowering our issuer credit rating on Windstream to '##' (selective default) from '##'. + We are also lowering the issue-level rating on certain of Windstream's senior unsecured notes that were exchanged at a discount to 'D' from 'C'. + At the same time, we are placing the 'B+' issue-level rating on Windstream Services' and Windstream Holding of the Midwest's senior secured debt on CreditWatch with negative implications. The CreditWatch listing reflects the potential for at least a one-notch downgrade of the senior secured debt if the issuer rating on Windstream is raised to the '###' category. + We plan to raise our rating on Windstream over the next...

Research Update