Moody's lowers Mirion, rates add-on B2

Moody's Investors Service said it downgraded Mirion Technologies, Inc.'s corporate family rating to B2 from B1 and its probability of default rating to B3-PD from B2-PD.

The agency also said it lowered the rating on the company's secured credit facility to B2 (LGD 3, 33%) from B1 (LGD 3, 32%).

Moody's also assigned a B2 (LGD 3. 33%) rating to the $80 million upsizing of the credit facility.

The proceeds from the upsizing will be used to repurchase about $77 million of convertible preferred stock held by Mirion's sponsor, American Capital, Moody's said.

The agency said it views the transaction as having the characteristics of a distribution to shareholders.

The outlook is stable.

The downgrades reflect the increased leverage to just less than 5x caused by the $80 million issuance, Moody's said.

The ratings consider the company's small revenue base, seasonality, niche product focus and high levels of intangibles, the agency said.

© 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.