Moody’s ups McGraw-Hill, rates MGHE notes Caa1

Moody's Investors Service said it assigned Caa1 to the proposed $400 million HoldCo notes of MHGE Parent, LLC and MHGE Parent Finance, Inc., the parent entities of McGraw-Hill Global Education Holdings, LLC.

Net proceeds from the HoldCo notes will fund a $388 million special dividend.

In addition, the agency upgraded existing debt instruments of McGraw-Hill Global to B1 from B2 due to the cushion provided by the proposed HoldCo notes to the outstanding senior secured debt.

The outlook is stable.

Moody's will withdraw the B2 corporate family rating, B2-PD probability of default rating and the SGL-2 speculative grade liquidity rating from McGraw-Hill Global and assign the corporate family rating, probability of default rating and speculative grade liquidity rating to MHGE in conjunction with this transaction.

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