NEW YORK (Standard&Poor's) May 10, 2011--Standard&Poor's Ratings Services said today that Los Angeles-based competitive local exchange carrier (CLEC) U.S. TelePacific Corp.'s (B-/Stable/--) proposed $50 million add-on to its $435 million senior secured term loan does not affect our ratings on the company. TelePacific plans to use the add-on loan proceeds to finance the proposed $36 million acquisition of hosted Voice over Internet protocol (VoIP) provider TeleKenex and the $7 million purchase of data center operator OCiX, add about $6 million of cash to the balance sheet, and pay related fees and expenses. We expect TelePacific's financial risk profile to remain highly leveraged, with pro forma adjusted leverage of about 6.9x. Our leverage calculation includes the present
