Moody's ups At Home, assigns notes Caa1

Moody's Investors Service said it upgraded At Home Holding III Inc.'s corporate family rating to B3 from Caa1 and probability of default rating to B3-PD from Caa1-PD. Concurrently, Moody's assigned a Caa1 rating to the company's proposed $250 million of five-year senior secured notes. The agency also upgraded the speculative-grade liquidity rating to SGL-2 from SGL-3 and changed the outlook to stable from negative.

“The CFR and PDR upgrades reflect the company's significant revenue and earnings growth in Q2 fiscal 2021 and Moody's expectations for stable to modestly lower operating performance over the near term. The SGL upgrade to SGL-2 from SGL-3 incorporates the lack of near-term maturities following the proposed refinancing transaction, as well as Moody's expectations for good revolver availability and lower capital spending, which will result in positive free cash flow over the next 12-18 months,” Moody’s said in a press release.

Proceeds and revolver borrowings will be used to refinance the senior secured term loan due 2022, with $332 million outstanding, and pay for transaction expenses.

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