Moody's gives OSP loan B1

Moody's Investors Service said it assigned a B1 rating to the proposed $465 million senior secured first-lien term loan of OSP Group, Inc.

The B2 corporate family and B2-PD probability of default ratings were affirmed and the outlook remains stable.

Proceeds from the proposed term loan, $40 million of an incremental second-lien term loan and cash from the balance sheet will be used to refinance existing debt, pay transaction fees and expenses and fund a dividend to shareholders.

The B1 rating on the company's current $372 million first-lien term loan due 2020 is unaffected, and will be withdrawn at the close of this transaction.

Moody's said the B1 rating assigned to the proposed facility reflects the B2-PD overall probability of default of the company and a loss given default assessment of LGD3, 38%. The facility benefits from the sizeable amount of junior claims in the proposed capital structure, including the proposed $145 million second-lien term loan (not rated by Moody's), as well as its first-lien position on substantially all assets of the company, other than accounts receivable, inventory and cash which are pledged on a first lien basis to the company's proposed ABL credit facility.

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