Moody’s ups Oasis PDR; rates facilities

Moody's Investors Service said it affirmed Oasis Outsourcing Holdings, Inc.'s B2 corporate family rating and upgraded the probability of default rating to B2-PD from B3-PD.

Concurrently, the agency assigned a B1 rating to the company's proposed first-lien term loan and revolving credit facility and a Caa1 rating to the proposed second-lien term loan.

The action follows Oasis' announcement of plans to refinance its debt structure to fund an acquisition and return capital to its existing shareholders, resulting in an increase in adjusted total leverage of roughly 1 time to more than 6 times (LTM as of April 2).

The outlook remains stable.

Despite the negative implications of a more aggressively levered capital structure, Moody’s said the affirmation of the B2 corporate family rating reflects the company's still healthy free cash generation and the expectation that the company will delever to under 6 times over the next year.

Additionally, the pending acquisition further enhances Oasis' scale and adds greater customer diversity to its business.

The upgrade of the probability of default rating reflects the proposed transition of Oasis's outstanding loans to a dual class of secured debt and the addition of first-loss support provided by the planned second-lien facility, the agency explained.

Moody's said it will withdraw the existing ratings on the first-lien credit facilities upon completion of the planned financing.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.