Moody's cuts philosophy, BioTech loans to B2

Moody's Investors Service said it downgraded the $35 million senior secured revolving credit facility due 2013 and $225 million first-lien senior secured term loan due 2014 of philosophy, Inc. and BioTech Research Laboratories, Inc. to B2 (LGD3, 45%) from B1 (LGD3, 41%) and affirmed Philosophy Acquisition Co., Inc.'s corporate family and probability-of-default ratings at B2.

Proceeds from the credit facilities, combined with new cash equity from the Carlyle Group, will be used to fund Carlyle's acquisition of a majority stake and controlling interest in philosophy.

The outlook is stable.

The agency said there has been no fundamental deterioration in philosophy's overall credit profile; rather, the downgrade of the credit facility follows the downsizing of the unrated second-lien senior secured term loan of philosophy and BioTech to $25 million from $50 million, a change that resulted in a higher proportion of first-lien debt in the company's capital structure.

© 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.