Moody’s applies B2 to AVSC facility

Moody's Investors Service said it assigned a B2 rating to AVSC Holding Corp.'s (PSAV) proposed amended and extended first-lien credit facility, consisting of an upsized $980 million first-lien term loan due 2024 (including a $180 million incremental term loan) and a $100 million revolving credit facility due 2022.

In the same action, the agency affirmed the company's B2 corporate family rating and B2-PD probability of default rating.

The outlook was changed to stable from negative.

Moody’s said the action follows the announcement that AVSC will upsize its first-lien term loan by $180 million and extend the maturities of its term loan to 2024 from 2021 and the revolving credit facility to 2022 from 2021.

Proceeds from the proposed $180 million incremental term loan will be used to retire the company's existing senior secured second-lien term loan due 2022.

The B2 instrument rating on the first-lien credit facility is one notch lower than the B1 rating on the existing credit facilities and reflects the change in Moody's expectation of recovery given the elimination of the benefit of the second-lien term loan in AVSC's capital structure. The second-lien term loan would have absorbed losses ahead of the first-lien creditors in the event of a default, the agency explained.

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