Moody's trims IntraFi, rates loan Caa2

Moody's Investors Service said it downgraded Nexus Buyer LLC's (IntraFi Network LLC) corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD. The agency affirmed the first-lien senior secured credit facility rating at B2 and rated the new $540 million second-lien term loan Caa2.

The action follows IntraFi's announcement about the new loan and to use the proceeds for a shareholder distribution and a change of control payment to certain employees, the agency said.

"Moody's adjusted total leverage pro forma for the transaction is 8.9x, with resulting pro forma free cash flow to debt of 2.7%" said Peter Krukovsky, a Moody's senior analyst, in a press release. "This second dividend recapitalization targeting a much higher pro forma leverage level is indicative of a financial strategy of maximizing financial leverage which is likely to be sustained over time."

The outlook remains stable.

© 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.