Moody’s cuts Colibri loans

Moody’s Investors Service said it downgraded McKissock Investment Holdings, LLC's (Colibri) the senior secured first-lien bank credit facilities rating to B3 from B2 and assigned a B3 senior secured rating to the planned incremental first-lien term loan. At the same time, the agency changed the outlook to positive from stable.

The agency also affirmed Colibri’s B3 corporate family rating and B3-PD probability of default rating following the proposed acquisition of Project Triumph.

Colibri agreed to buy a target in the healthcare end market (Project Triumph). Proceeds from the planned $400 million first-lien term loan along with new preferred equity and new convertible preferred equity will be used to repay Colibri's existing $180 million second-lien term loan, fund the purchase of Project Triumph, and pay related fees and expenses. Concurrently, Colibri is upsizing its revolver to $70 million, about $12 million drawn at close, maturing in March 2027.

“The change to a positive outlook reflects that the Project Triumph acquisition is modestly deleveraging due to the sizable equity component of the financing and will improve Colibri's operating profile,” Moody’s said in a press release.

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