Moody's assigns Lightstone loans B2

Moody's Investors Service, Inc. said it assigned a B2 rating to Lightstone Holdco LLC's planned amended and extended senior secured term loans due January 2027 consisting of a $1.641 billion senior secured term loan B and a $93 million senior secured term loan C.

The agency also affirmed the B2 rating on Lightstone’s senior secured credit facilities.

Lightstone plans to extend the outstanding term loans B and C by three years and the new amended and extended term loans are expected to benefit from numerous revisions, Moody’s said.

“Key lender benefits include a minimum debt paydown of $100 million at financial close, higher interest margins, a new minimum target debt balance of $850 million, a new minimum DSCR covenant of 1.05x, a lower minimum 2x Debt to EBITDA threshold before the excess cash sweep steps down to 50% subject to the minimum debt balance target, and a cap on deemed tax distributions of $50 million for 2022, up to $75 million in 2023 if the total net debt balance excluding revolving loans is below $1.35 billion (otherwise the cap is $50 million), and $35 million starting in 2024,” the agency said in a press release.

The outlook remains negative.

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