...MEXICO CITY (S&P Global Ratings) April 26, 2018--S&P Global Ratings assigned today its '##-' issue-level rating on Sixsigma Networks Mexico, S.A. de C.V.'s (KIO Networks; ##-/Stable/--) proposed senior unsecured notes for $300 million due 2025. We are also assigning our '3' recovery rating to the notes, indicating our expectation for a meaningful (50% to 70%; rounded estimate: 60%) recovery in the event of payment default. The issue-level rating on the proposed notes is the same as the corporate credit rating. Kio Networks will use proceeds to repay the outstanding amount of $230 million of its $500 million senior unsecured notes due 2021, $14 million to pay the call premium for the redemption of the 2021 notes, and the remaining $56 million for general corporate purposes (mainly capex). We believe the company will have headroom under its covenant in 2018, given that the new notes will have an incurrence covenant of a net consolidated debt to EBITDA ratio no greater than 4.25x. We believe...
