Moody’s downgrades SnapAV

Moody's Investors Service said it downgraded Wirepath LLC's (SnapAV) corporate family rating to B3 from B2 following the company's announcement that it will increase the size of its senior secured first-lien term loan by $390 million to $683 million.

Concurrently, Moody's downgraded SnapAv's probability of default rating to B3-PD from B2-PD and downgraded the company's senior secured first-lien bank credit facilities to B3 from B2.

The outlook remains stable.

Proceeds from the incremental debt issuance, balance sheet cash, and $247 million of additional equity from private equity sponsor Hellman & Friedman will be used to fund SnapAV's acquisition of Control4.

“The downgrade reflects the meaningful increase in debt-to-EBITDA leverage and weakening of free cash flow relative to debt as a result of the acquisition,” the agency said in a news release.

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