Moody's rates Oppenheimer loan B1

Moody's Investors Service said it has assigned a B1 rating to the $125 million seven-year senior secured bank facility for E.A. Viner International, Inc., a wholly owned subsidiary of Oppenheimer Holdings Inc., that will also guarantee the bank facility. Moody's also rated Oppenheimer's foreign currency corporate family rating B1.

The outlook is stable.

E.A Viner is refinancing $160.8 million of convertible debentures with the $125 million senior secured facility, as well as $30 million to $35 million of a subordinated convertible placement to employees, and the remainder in cash.

Factors that could change the rating upward include resolution of existing regulatory issues, and strengthening the risk governance infrastructure and sustainable improvement of the pretax margin percentage into the mid-teens combined with reduced leverage, the agency said.

Factors that could change the rating downward include significant new regulatory issues, elevated turnover amongst most productive brokers that results in franchise erosion and no improvement in leverage.

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