Moody’s cuts Gigamon facilities

Moody’s Investors Service said it downgraded Gigamon Inc.’s first-lien senior secured bank credit facilities to B3 from B2. The downgrade of the facilities reflects the single class debt structure following the repayment of the second-lien term loan. To fund the repayment of the second-lien debt, Gigamon will raise an incremental $150 million of first-lien term loan fungible with its existing facility. The outlook is stable.

The agency also affirmed Gigamon’s B3 corporate family rating and B3-PD probability of default rating. The B3 CFR is driven by the very high leverage and weak cash flow generation, Moody’s said.

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