Moody's rates Mitchell loans B2, Caa2

Moody's Investors Service said it affirmed Mitchell International, Inc.'s B3 corporate family rating and B3-PD probability of default rating, pro forma for a proposed capital structure refinancing and dividend distribution.

Moody's assigned a B2 instrument rating to the new senior secured first-lien credit facilities, including a $2.475 billion seven-year term loan and a $275 million five-year multi-currency revolver.

Moody's also assigned a Caa2 instrument rating to the new $525 million eight-year senior secured second-lien term loan.

The outlook remains stable.

Proceeds from the new debt facilities, along with cash on hand, will be used to finance a $457 million (roughly) dividend distribution, to repay the existing first-lien and second-lien credit facilities and to pay transaction fees.

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