Moody’s assigns B2 to Access loans

Moody's Investors Service said it assigned a B2 rating to Access CIG, LLC’s proposed senior secured first-lien credit facility consisting of a $60 million revolver due 2028 and a $1.125 billion term loan due 2028.

All other ratings, including the B3 corporate family rating, the B3-PD probability of default rating, and Caa2 senior secured second-lien credit facility are unaffected.

The new revolver will replace the company's outstanding $60 million revolver due November 2024 and proceeds from the new term loan will be used to repay the outstanding $1.108 billion first-lien term loan due February 2025. Moody's will withdraw the existing first-lien credit facility at the close of the transaction.

“Moody's considers the transaction as credit positive because it extends Access' maturity profile with only a modest increase in the company's cash interest burden. Pro forma for transaction fees, the company will have $90 million of cash on hand. Moody's believes that the revolver will be reserved for general corporate purposes versus acquisition activity. The extension of the revolver maturity provides liquidity support for the cash needs of the company over the next 12 to 18 months as Moody's expects free cash flow to be modestly negative over the same period,” the agency said in a press release.

The outlook is stable.

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