TEXT-S&P Assigns NTELOS' $500 Mil. Terms Loans 'BB-' Rtg
SAN FRANCISCO (Standard & Poor's) Nov. 8, 2012--Standard & Poor's Ratings Services today assigned its 'BB-' issue-level rating and `4' recovery rating to Waynesboro, Va.-based regional wireless carrier NTELOS Holdings Corp. (NTELOS; BB-/Stable/--) subsidiary NTELOS Inc.'s $150 million term loan A due 2015 and its $350 million term loan B due 2019. Proceeds will refinance the approximately $460 million outstanding on the current term loan which matures in 2015.
At the same time, we withdrew our `BB-' rating on NTELOS Inc.'s $475 million senior secured credit facility due 2019, the earlier-anticipated financing that has been supplanted by the new term loans.
The recovery rating of '4' indicates our expectation for average (30% to 50%) recovery of principal in the event of a payment default. The $35 million revolving credit facility will be terminated as part of the refinancing. (For the corporate credit rating rationale, see the summary analysis on NTELOS published on June 22, 2012.)
Related Criteria And Research
-- Business Risk/Financial Risk Matrix Expanded, Sept. 18, 2012
-- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011 -- Use Of CreditWatch And Outlooks, Sept. 14, 2009
-- Criteria Guidelines For Recovery Ratings, Aug. 10, 2009
-- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008
-- 2008 Corporate Criteria: Rating Each Issue, April 15, 2008
-- 2008 Corporate Criteria: Ratios And Adjustments, April 15, 2008
NTELOS Holdings Corp.
Corporate Credit Rating BB-/Stable/--
$150 Mil. Term Loan A Due 2015 BB-
Recovery Rating 4
$350 Mil. Term Loan B Due 2019 BB-
Recovery Rating 4
$475 Mil. Credit Fac. Due 2019 N.R. BB-
Recovery Rating N.R. 4