Moody's affirms LN Acquisition

Moody's Investors Service said it the ratings of LN Acquisition Corp., a wholly owned subsidiary of Lincoln Holdings Enterprises Inc., including its B2 corporate family and probability-of-default ratings, B1 (LGD3, 35%) first-lien term loan B and senior secured revolver and Caa1 (LGD5, 86%) second-lien term loan.

The outlook remains stable.

The affirmation follows the company's decision to increase its dividend payment to its shareholders by an additional $25 million to $175 million, which will be funded by an equivalent increase in the proposed seven-year first-lien term loan.

The agency said that while signaling a degree of financial aggressiveness likely to constrain the rating going forward, the debt-funded dividend rise deteriorates only modestly the company's leverage to 6.2x from 5.9x. Moody's still expects the company to generate positive annual free cash flow and to reduce its leverage ratio to a level closer to 5 times in the intermediate term.

© 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.