Moody’s ups KLDiscovery loan.

Moody’s Investors Service said it upgraded the first-lien senior secured credit facility of LD Intermediate Holdings, Inc. (KLDiscovery) to B2 from B3. Moody’s also affirmed the company’s Caa1 corporate family rating and Caa1-PD probability of default rating. The agency changed the outlook to stable.

Moody's upgraded the ratings on the first lien senior secured credit facility to B2 from B3 to reflect the greater support and loss absorption provided by the subordinated debt under Moody's loss given default methodology. With $200 million of new convertible debt raised, which replaced $125 million of senior secured second-lien debt, KLD increased the proportion of unsecured debt to secured debt in the capital structure.

The change in outlook reflects the view of continued growth in the eDiscovery segment along with the recent reverse initial public offering merger, Moody’s said.

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