Moody’s rates Steinway loan B3

Moody's Investors Service said it assigned a B3 rating to Steinway Musical Instruments, Inc.'s $235 million first-lien senior secured term loan.

The company’s B3 corporate family rating and B3-PD probability of default rating are unchanged.

Proceeds, along with borrowings under the proposed upsized ABL credit facility, will be used to repay the existing first-lien senior secured term loan, add balance sheet cash and pay fees and expenses associated with the transaction.

The agency expects to withdraw the B3 rating on the existing term loan upon closing of the transaction.

The outlook is stable.

Moody's said it believes the refinancing is credit positive as it will improve Steinway's debt maturity profile, while also providing greater flexibility and headroom under financial covenants.

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