Moody's gives Miramax loans Ba2, B2

Moody's Investors Service said it changed Miramax Film NY, LLC's bank loan ratings based upon an expected change in the debt structure from a single class of debt to a first- and second-lien structure.

As a result, Moody's said it assigned a Ba2 rating to Miramax's proposed $325 million five-year senior secured first-lien term loan B and assigned a B2 rating to the company's $83 million six-year senior secured second-lien term loan.

The company's Ba3 corporate family rating and its B1 probability of default rating are unchanged, the agency added, noting that FilmYard Holdings, LLC will be the holding company for Miramax.

Proceeds from the term loans will be used to finance the purchase of Miramax from the Walt Disney Co., pay transaction costs and fund an opening cash account for the newly created company, Moody's added.

Miramax's Ba3 corporate family rating reflects the inherent high risk associated with the film business and the depreciating asset base represented by a vintage content library, the agency noted.

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