Moody’s rates RealD loan B2

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to RealD, Inc.

Moody's also assigned a B2 rating to the company’s new five-year $250 million senior secured first-lien term loan.

The company is also raising a six-year $75 million senior secured second-lien term loan (unrated).

The proceeds of these financings, together with $25 million in proceeds from newly issued common equity, will be used to repay the outstanding credit facility and pay transaction costs.

The outlook is stable.

“RealD's B3 corporate family rating is supported by its dominant U.S. market share, with a large global installed base that is well protected by patents, contracts, and global demand,” the agency said in a news release.

“The company also benefits from a strong business model driven by long-term customer contracts, predictable capital requirements with low maintenance, producing very high margins near 50%.”

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