Moody's cuts Goodman loans

Moody's Investors Service said it downgraded Goodman Global Inc.'s proposed $250 million first-lien revolving credit facility and $1.5 billion first-lien term loan B ratings to B1 (LGD3, 43%) from Ba3 (LGD3, 41%) and affirmed the B3 (LGD6, 91%) rating on the company's proposed $275 million second-lien term loan. The company's B1 corporate family and probability of default ratings were also affirmed.

The outlook remains negative.

Proceeds from the refinancing will be used to fund a $366 million dividend to shareholders.

The downgrade of the ratings for the proposed first-lien revolver and term loan B result from a shift in the proposed capital structure, with $100 million of debt moving from the proposed second-lien term loan into the first-lien term loan, Moody's said.

Goodman's B1 corporate family rating reflects its competitive market position, established distribution and credit metrics, the agency said.

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