Moody's assigns Learning Care loans B2

Moody's Investors Service said it assigned B2 ratings to Learning Care Group (US) No. 2 Inc.'s planned first-lien credit facility consisting of a $100 million five-year revolver due 2028 and a five-year $900 million term loan due 2028.

The company's other ratings including the B3 corporate family rating, the B3-PD probability of default rating and stable outlook are not affected.

The term loan proceeds will be used to pay down the outstanding first-lien, also rated B2, and second-lien, rated Caa2, term loans, as well as related transaction fees.

“The refinancing transaction is credit positive because it addresses the upcoming maturities of the existing revolver (September 2024), first-lien term loan (March 2025) and second-lien term loan (March 2026) at a manageable cash interest cost. The total amount of debt will be largely unchanged, and Moody's anticipates cash interest expense will increase slightly in FY24 (about $5 million) vs FY23,” the agency said in a press release.

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