Moody’s assigns Ba3 to Meredith loan

Moody’s Investors Service said it assigned a Ba3 rating to the incremental senior secured term loan to be issued by Meredith Corp. The agency downgraded the ratings on the first-lien senior secured credit facilities to Ba3 from Ba2.

“The ratings downgrade on the first-lien credit facilities reflects the increase in total secured debt as a proportion of total debt and its senior position ahead of unsecured debt,” Moody’s said in a press release.

The company will use the proceeds together with additional incremental secured debt and balance sheet cash to redeem all of its outstanding series A preferred stock and pay fees and expenses for the redemption. Meredith also executed a financial covenant amendment, which improves available liquidity under the company’s revolving credit facility.

Moody’s affirmed Meredith’s corporate family rating at B2, the probability of default rating at B2-PD and senior unsecured notes rating at Caa1. The outlook is stable.

The agency upgraded the speculative grade liquidity rating to SGL-1 from SGL-2, reflecting improved availability under the company’s revolving credit facility after the execution of the amendment.

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