New York, September 15, 2014 -- Moody's Investors Service assigned a Caa1 rating to the proposed $100 million bond issuance of RCN Telecom Services, LLC (RCN). The company expects to use proceeds of the transaction (an add-on to RCN's existing 8.5% senior unsecured bonds due August 15, 2020) to fund another dividend distribution to its private equity owners, ABRY Partners, LLC and Spectrum Equity. RCN's B2 Corporate Family Rating (CFR), B1 first lien credit facility rating, Caa1 unsecured bonds rating, and stable outlook are unchanged.
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