DBRS Rates ALLTEL Communications Inc.’s $1 billion PIK Notes Issue “B”, Stable Trend

DBRS has today assigned a rating of B to ALLTEL Corporation’s (ALLTEL or the Company) recently announced debt issuance at ALLTEL Communications Inc. This issuance consisted of $1 billion of 10.375% Senior Unsecured PIK Notes due December 2017. The PIK spread is 75 bps or 11.125%. The trend is Stable.

This issue is being done through a 144A private placement (to settle December 3, 2007) with proceeds expected to refinance a portion of its $2.5 billion PIK Bridge facility that was drawn to help to complete the privatization of the Company in a cash deal that valued the common equity at $24.6 billion. The transaction valued ALLTEL at an enterprise value of $27.5 billion.

DBRS has today released a report that provides additional information on the November 16, 2007, rating actions that downgraded the ratings of ALLTEL Corporation (ALLTEL or the Company) to B from “A”. DBRS also initiated new ratings for ALLTEL Communications Inc. including an Issuer Rating of BB (low). These rating actions followed the Company’s announcement of the close of the planned sale of the Company to TPG Capital Partners and GS Capital Partners.

Note:
All figures are in U.S. dollars unless otherwise noted.