Moody’s assigns Constellis B3

Moody’s Investors Service said it assigned ratings to New Constellis Borrower LLC (Constellis), including a B3 corporate family rating, following a financial restructuring where debts were exchanged for new debt and equity in the post-exchange corporate family.

The agency assigned a Ba3 to the senior secured term loan, a B2 to the first-lien term loan and a Caa1 to the second-lien term loan. The outlook is stable.

The agency withdrew its ratings for Constellis Holdings, LLC.

“Through the restructuring process, Constellis reduced its debt load by more than $1 billion to about $310 million today, and the previously weak liquidity profile has also been resolved,” said Bruce Herskovics, a Moody’s lead analyst, in a press release.

“The operational improvement and contract due diligence process that took place through the restructuring period, along with a substantially reduced annual interest burden, should position Constellis to realize steady albeit likely still not robust free cash flow in the coming year,” he said.

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