Moody's affirms Greenhill on term loan issue

Moody's Investors Service said it affirmed Greenhill & Co., Inc.'s Ba2 corporate family rating and Ba2 senior secured term loan and revolving credit facility ratings.

The affirmation follows news that Greenhill will be issuing a $360 million first-lien term loan due 2024 in order to refinance its existing $328 million first-lien term loan due 2022.

The company intends to use the remaining proceeds to repurchase shares and for general corporate purposes, Moody's explained.

The outlook is stable.

Moody's said it decided to withdraw the outlook on Greenhill's senior secured term loan, revolving credit facility and corporate family rating for its own business reasons.

Greenhill's creditworthiness is underpinned by a profitable franchise with reasonable pretax margins, supported by a variable compensation model, the agency said.

Since Greenhill lacks the scale and diversification of some other advisory boutiques, the company's profitability and cash flow generation capacity could be more challenged compared with peers in an adverse business environment, Moody's said.

© 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.