Moody's ups Form rates loans B2 Caa2

Moody's Investors Service said it upgraded Form Technologies LLC’s ratings, including the corporate family rating and the probability of default ratings to B3 and B3-PD from Caa2 and Caa2-PD, respectively.

Concurrently, Moody's assigned a B2 rating to Form’s proposed first-lien first-out senior secured credit facilities and Caa2 rating to its first-lien last-out senior secured credit facility.

Moody's expects proceeds to be used towards repaying $65 million of outstandings under the company's revolving credit facility and $215 million of Form Technologies' first-lien term loan and $204 million of second-lien term loan together with other transaction-related costs. The refinancing will be effectuated through the proposed $175 million first-lien last-out term loan and $300 million of preferred equity.

“The ratings upgrade is based on the company's addressing its near-term debt maturities through the proposed refinancing, extending its debt maturity profile to 2025 from 2021,” Moody’s said in a press release.

Moody’s changed the outlook to stable from negative. The outlook reflects the expectation that the company will continue to take proactive measures to increase profitability as the top line gradually recovers from depressed levels in 2020 and that it maintains an adequate liquidity profile, the agency said.

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