Moody’s assigns B2 rating to Apro facility

Moody’s Investors Service said it assigned a B2 rating to Apro, LLC’s (United Pacific) proposed $500 million senior secured bank facility, consisting of a $50 million five-year revolver, $350 million seven-year term loan B, and a $100 million delayed-draw term loan.

Moody’s said it left the company’s current bank credit facilities unchanged and these ratings will be withdrawn upon closing on the refinancing.

“The B2 rating on the proposed bank credit facility is one notch below the B1 rating on the existing bank credit facility and in line with the corporate family rating. The B2 rating reflects the higher percentage of senior secured debt in the company’s capital structure, relative to lease rejection claims and unsecured accounts payable as compared to the existing capital structure and the 65% family recovery rate which is customary per Moody’s Loss Given Default methodology when a company has only secured bank debt in its capital structure,” said the agency in a press release.

Moody’s affirmed Apro’s B2 corporate family rating and B3-PD probability of default rating.

The outlook is stable.

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