NEW YORK-Moody’s Investors Service Inc. assigned speculative grade ratings to $1.4 billion of planned new debt that will be used to refinance outstanding debt and to fund the buyout and recapitalization of Centennial Cellular Corp. by Blackstone Partners and Welsh, Carson, Anderson & Stowe.
The New York-based rating agency assigned a B2 rating to a proposed $1.05 billion secured bank credit facility of Centennial Cellular Operating Co. L.L.C., and a lower rating of Caa1 to a planned issue of $370 million in 10-year senior subordinated notes.
“The ratings reflect the high degree of leverage at the recapitalized entity, the competitive nature of the wireless telecommunications market and the potential volatility of the Puerto Rican operations,” Moody’s analysts M.G. Subhas and Marcus C. Jones said.
“Positively, the ratings recognize the relatively stable nature of rural cellular cash flows, a strong management team augmented by recent additions and a good franchise in what has been and is expected to continue to be a growing telecommunications market in Puerto Rico.”
