Moody’s rates Wave Holdco notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to the proposed $150 million senior PIK toggle notes of Wave Holdco, LLC, a newly created holding company that owns 100% of WaveDivision Holdings, LLC.

The company plans to use proceeds to fund a dividend to its shareholders, Oak Hill Capital Partners, GI Partners and management.

The agency also changed the outlook to negative and upgraded ratings on Wave's secured bank debt and unsecured bonds due to the increase in junior capital created by the HoldCo bonds.

Assuming close of the transaction as proposed, Moody's will withdraw the B2 corporate family rating from Wave and assign a B2 rating to Wave Holdco in conjunction with this transaction.

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