Moody's rates Otter Products loan B1

Moody's Investors Service said it affirmed the ratings, including the B1 corporate family rating and the B1-PD probability of default rating, of Otter Products, LLC.

Concurrently, the agency assigned a B1 rating to the company's proposed $125 million senior secured term loan A due 2019.

Moody's notes that pro forma leverage of 2.6x on a Moody's adjusted basis will remain unchanged as the new $125 million term loan A is offset by a $125 million reduction in the term loan B from $625 million to $500 million. The term loan B and $100 million revolving credit facility were originally rated on May 15.

Proceeds from the new term loan A, along with the term loan B, will be used to fund a $250 million distribution to shareholders and to refinance the existing credit facility.

The outlook is stable.

The B1 ratings on the loans are at the same level as the corporate family rating, reflecting their preponderance within the capital structure.

Moody's said the new senior secured credit facility is expected to have a first-lien claim on all tangible and intangible assets of the borrowers and the guarantors.

© 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.