Moody's lowers Macrovision loan to Ba2

Moody's Investors Service said it lowered the rating for Macrovision Solutions Corp.'s proposed five-year senior secured term loan to Ba2 (LGD2, 28%) from Ba1 (LGD2, 25%) following an increase in its size to $550 million from $500 million and a decrease in the company's proposed senior unsecured notes to $100 million from $150 million. Additionally, the term of the senior notes was reduced to five-and-a-half years from seven years.

The Ba3 corporate family and probability-of-default ratings, the SGL-2 speculative-grade liquidity rating and the B1 (LGD5) rating assigned to the senior unsecured notes remain unchanged, although the loss-given-default rate assigned to the notes was revised to 72% from 80%.

The outlook is stable.

Macrovision is acquiring Gemstar-TV Guide International, Inc. for $2.8 billion financed with stock, debt and cash on hand at both companies. The transaction is expected to close in May.

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