Consolidated Communications, Inc. -- Moody's assigns B3 rating to Consolidated's notes; Outlook stable

New York, September 04, 2014 -- Moody's Investors Service ("Moody's") assigned a B3 rating to the proposed $200 million senior unsecured note offering of Consolidated Communications Finance II Co. and affirmed Consolidated Communications, Inc.'s ("Consolidated" or "the company") existing B1 Corporate Family Rating ("CFR") and B1-PD Probability of Default Rating ("PDR"). Consolidated intends to use the net proceeds from the offering to finance the cash consideration of the acquisition of Enventis Corporation ("Enventis"), to pay the fees and expenses in connection with the acquisition, to repay existing indebtedness of Enventis and to repay a portion of Consolidated's outstanding 10.875% senior notes due 2020 or its incremental term loan facility due 2020. The pending acquisition is anticipated to close in the fourth quarter of 2014 and supports Consolidated's strategic focus on broadband and commercial services, and enhances the company's long-term prospects. The combined company will also have improved opportunities for success-based expansion into new markets. Moody's expects the company to continue generating positive free cash flow because the transaction will be approximately neutral to free cash flow upon full integration. The outlook remains stable. Upon close of the acquisition, the new notes will be assumed by Consolidated Communications, Inc., and the ratings will be moved to that entity.

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