Moody’s cuts MediaOcean facility

Moody's Investors Service said it affirmed MediaOcean LLC's corporate family rating of B3 as well as its probability of default rating of B3-PD, and concurrently downgraded the ratings on the company's senior secured first-lien credit facility from B2 to B3.

The agency said the action follows MediaOcean's recent announcement that it intends to upsize its senior secured first-lien term loan by $90 million and use the proceeds to repay its outstanding second-lien debt, thereby transitioning to a capital structure with a single class of secured debt.

“While the refinancing is leverage neutral and expected interest savings will positively impact free cash flow, the loss of first-loss support currently provided by the existing second-lien term loan results in greater credit risk for first-lien lenders,” Moody’s said in a news release.

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