Moody's: LTI Holdings loans B2, Caa2

Moody's Investors Service said it assigned B2 (LGD 3) ratings to LTI Holdings, Inc. (Boyd)'s new $75 million first-lien revolver and $730 million first-lien term loan facility.

The company's $285 million second-lien term loan facility was rated Caa2 (LGD 5).

The company's corporate family rating also was affirmed at B3 and its probability of default rating also was affirmed at B3-PD.

The outlook is stable.

The proceeds from the debt issuance will be used to refinance current debt and fund the acquisition of Aavid Purchaser Corp., Moody's said.

The acquisition of Aavid will nearly double Boyd's revenue base, the agency said.

The ratings reflect the company's still modest size following the acquisition, significant leverage and qualitative concerns related to the cyclical and short-lived end markets, Moody's said.

The ratings also consider the mix of end-market products serving both short-term product cycles and longer term product cycles, the agency said.

While Boyd had been underperforming the 2016 expectations, this was mostly because of weakness in certain large mobile clients, Moody's said.

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