New York, April 01, 2014 -- Moody's Investors Service ("Moody's") has affirmed Cogent Communications Group, Inc.'s ("Cogent" or "the company") B3 corporate family rating (CFR), B3-PD probability of default rating (PDR) and SGL-1 speculative grade liquidity (SGL). The outlook remains stable. As part of the rating action, Moody's has also assigned a Caa1 (LGD5-74%) rating to the new $200 million senior unsecured notes due 2021 to be issued by Cogent Communications Finance, Inc, a newly formed direct and unrestricted subsidiary of the company which will be merged with and into the company following the reorganization. The proceeds from the new note offering will be used for general corporate purposes including the repurchase the company's common stock or for special or recurring dividends to its stockholders. The proceeds will be deposited into an escrow account along with enough cash infusion from the company in order to meet the interest payment on the notes until the completion of the reorganization. One of the conditions to the release of the proceeds from the note offering in the escrow account to the company is the assumption of all obligations under the notes and the indenture by the company. The rating is subject to a review of the final documentation and the completion of the corporate restructuring with Cogent assuming the role of the borrower for the new senior unsecured notes. Based on Moody's expectation that the notes will be assumed by Cogent post the restructuring, Moody's has also upgraded the instrument ratings on the existing senior secured notes due 2018 at Cogent to B1 (LGD2-24%) from B2 (LGD3-40%) give the support from the new senior unsecured notes.

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