Moody’s drops ATI facilities to B1

Moody's Investors Service said it downgraded ATI Holdings, Inc.'s upsized $445 million senior secured credit facilities rating to B1 from Ba3, which consist of a $50 million revolving credit facility due 2019, a $305 million first-lien term loan due 2020 and a new $140 million first-lien term loan add-on due 2020.

At the same time, the agency affirmed ATI's B2 corporate family rating and B2-PD probability of default rating.

The outlook is stable.

Proceeds will be used to pre-fund pending acquisitions of $40 million, pay a special dividend to shareholders of $100 million and cover transaction fees and expenses.

Moody’s said the lowering of the company's first-lien term loan rating reflects the increase in the amount of first-lien term loan claim in the capital structure and the corresponding decline in expected recovery as determined in the application of Moody's Loss Given Default Methodology.

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