Moody's rates new MetoKote facility

Moody's Investors Service said it took rating actions in conjunction with MetoKote Corp.'s proposed $30 million common stock share repurchase and corresponding refinancing of the company's existing guaranteed senior secured credit facilities and subordinated seller notes.

Moody's assigned a B1 rating to MetoKote's proposed $30 million guaranteed senior secured first-lien revolving credit facility due 2009; a B1 rating to MetoKote's proposed $125 million guaranteed senior secured first-lien term loan due 2010; and a B3 rating to MetoKote's proposed $55 million guaranteed senior secured second-lien term loan due 2011. Moody's also confirmed MetoKote's B1 senior implied rating and downgraded to Caa1 from B2 MetoKote's senior unsecured issuer rating.

The outlook is stable.

Moody's said the rating actions reflect that proposed transactions - including $30 million of common equity decapitalization - would materially increase MetoKote's leverage and generally weaken the company's cash interest coverage and other credit protection measures.

© 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.