Moody’s drops Access, loans

Moody's Investors Service said it downgraded Access CIG LLC's corporate family rating and probability of default rating to B3 and B3-PD, respectively.

The agency also lowered the company's first-lien credit facilities ratings, consisting of its a $40 million revolving credit facility and $392 million first-lien term loan (including the proposed $50 million incremental facility) to B2 from B1 and its $152 million second-lien term loan to Caa2 from Caa1.

Proceeds from the incremental term loan will be used to repay about $30 million of outstanding revolver borrowings, pre-fund cash to the balance sheet for future acquisitions and pay associated transaction expenses.

Moody’s said the corporate family rating downgrade reflects its view that Access’ projected free cash flow is materially lower than previously anticipated and will delay the company's progress in reducing its very high debt-to-EBITDA leverage over the next 12-18 months.

On a pro forma basis for recent acquisitions, the agency expects Access' debt-to-EBITDA leverage (incorporating Moody's standard analytical adjustments) to be about 7.3 times for the 2 months ended Sept. 30, 2014.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.