Moody's rates MEI facility B1

Moody's Investors Service said it assigned a B1 corporate family rating and B1-PD probability of default rating to MEI, Inc.

In a related action, Moody's assigned a B1 rating to the company's proposed first-lien secured bank facility.

Proceeds from the bank credit facility and some cash on hand will be used to refinance MEI's existing debt and to pay related fees and expenses. Also, about $57 million of mezzanine debt is being converted to equity, establishing a new and simplified capital structure.

The outlook is positive.

Moody's said the B1 rating assigned to the first-lien senior secured bank credit facility, the same rating as the corporate family rating, reflects its position as the preponderance of debt in MEI's capital structure. The bank credit facility is comprised of a $60 million revolving credit facility expiring in 2018 and a $390 million term loan maturing in 2020.

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