Moody's ups SnapAV first-lien ratings

Moody's Investors Service said it upgraded Wirepath LLC's (SnapAV) senior secured first-lien bank credit facilities to B2 from B3 and affirmed the company’s B3 corporate family and B3-PD probability of default ratings. The outlook remains stable.

The rating action follows the announcement SnapAV will relaunch a $390 million term loan financing and restructure it as a $290 million first-lien term loan and a $100 million second-lien term loan. Proceeds from the incremental debt issuance and $247 million of new equity from private equity sponsor Hellman & Friedman were used to fund the acquisition of Control4, which closed in August.

The upgrade of the senior secured first-lien ratings reflects the added first-loss absorption provided by the new $100 million second-lien term loan (unrated) and reduction in the amount of total first-lien debt.

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