Moody’s trims Access CIG first-lien loan

Moody's Investors Service said it affirmed Access CIG, LLC's corporate family rating at B3, probability of default rating at B3-PD and the senior secured second-lien credit facility rating at Caa2.

Moody's also downgraded the company's senior secured first-lien credit facility rating to B3 from B2 following a $200 million incremental first-lien term loan raise.

The outlook is stable.

Proceeds from the $200 million incremental first-lien term loan will be used to repay $153 million of the company's existing senior secured second-lien term loan, add $43 million in balance sheet cash, and pay related transaction costs.

The incremental cash is intended for general corporate purposes, including acquisitions.

Moody's said it views the transaction as a negative credit development given the increase in leverage, although the additional balance sheet cash is supportive of the company's adequate liquidity profile.

“The downgrade of the first-lien credit facility rating reflects the reduction of loss absorption provided within the capital structure by the now-smaller second-lien term loan,” the agency said in a news release.

“The first-lien now represents the preponderance of the debt obligations in the capital structure.”

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