Moody’s cuts Learning Care, rates facilities

Moody's Investors Service said it downgraded Learning Care Group (US) No. 2 Inc.'s corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD.

At the same time, the agency assigned B2 ratings to the company's proposed first-lien senior secured credit facilities, consisting of a $520 million term loan due 2025 and $75 million revolver due 2023, and a Caa2 rating to its proposed $160 million second-lien senior secured term loan due 2026.

The outlook is stable.

“The action reflects the aggressive financial policies of the company in its willingness to nearly double its funded debt level for a significant shareholder distribution, which results in weakening of its credit metrics and a reduction in its financial flexibility,” Moody’s said in a news release.

The agency said the B2 rating on first-lien credit facilities reflects their first-priority lien on substantially all assets of the company and its subsidiaries and benefits from the loss absorption provided by the second-lien debt, rated Caa2, as well as significant unsecured operating lease obligations.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.