Moody’s cuts Husky IMS facilities, rates loan B2

Moody's Investors Service said it affirmed Husky IMS International Ltd.'s B2 corporate family rating and B2-PD probability of default rating, downgraded the first-lien credit facilities ratings to B2 from B1 and assigned a B2 rating to the proposed $160 million first-lien term loan.

The Caa1 rating on the existing second-lien term loan will be withdrawn when the refinance transaction closes. Moody's also withdrew the SGL rating.

The outlook remains stable.

Proceeds from the new $160 million first-lien term loan and balance sheet cash will be used to repay the existing $161 million second-lien term loan outstanding and pay fees and expenses.

"The ratings affirmation considers that Husky's refinance transaction is leverage-neutral as adjusted Debt/EBITDA remains around 5.5x," Moody's assistant vice president Peter Adu said in a news release.

"The ratings on the first-lien facilities were downgrade to the same level as the corporate family rating due to elimination of loss absorption cushion provided by the second-lien term loan."

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