Moody's assigns Vivint loan B2

Moody's Investors Service said it assigned B2 ratings to a new $1.327 billion first-lien term loan, which represents an upsizing (and maturity extension) of APX Group, Inc.’s (Vivint) existing $802 million first-lien term loan. The company plans to use proceeds pay down the $270 million principal of 8 7/8% notes due 2022 in its entirety. Moody's will withdraw ratings on the notes upon their retirement.

Moody's upgraded Vivint's speculative grade liquidity rating to SGL3, from SGL4. The company plans to use its liquidity, which includes $465 million of proceeds from its Jan. 17-concluded SPAC transaction, to pay down in full its $454 million of senior unsecured notes due 2020. The anticipated repayment of this near-maturing debt allows the avoidance of potential springing-maturity provisions on all the company's first-lien debt. The threat of the springing maturity was the primary reason Moody's has had Vivint's speculative grade liquidity rating at SGL4. The absence of that threat supports the upgrade to SGL3. the agency said.

Moody’s also confirmed the company's B3 corporate family rating and its B3-PD probability of default rating. Moody's confirmed the B2 ratings on the existing first-lien notes, which have maturities of 2022 and 2024 and which currently sum to nearly $1.4 billion. Moody's also confirmed the Caa2 ratings on Vivint's $400 million senior unsecured notes due 2023.

These actions conclude Moody's review for upgrade which was initiated on Sept. 18. The outlook is positive.

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