Moody’s gives Ba3 to Monitronics loan

Moody's Investors Service said it assigned a Ba3 rating to Monitronics International, Inc.'s new, $350 million senior secured term loan, the proceeds of which are expected to be used to pay down $300 million of existing term loan debt and $50 million of revolver borrowings.

The leverage-neutral transaction has no impact on the company's B2 corporate family rating, the Ba3 rating on existing secured debt, the Caa1 senior unsecured notes rating or the stable outlook.

Moody’s said the financing has the credit-favorable impacts of pushing out the maturity of a portion of Monitronics' term loan debt by four years, to 2022, and freeing up revolver availability. However, the transaction will also moderately raise the cost of the company's financing, as the incremental debt will likely be priced slightly higher than existing term loan debt, the agency said.

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