Moody’s rates Sundial, facilities B3

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Sundial Group Holdings LLC, a wholly owned subsidiary of Sundial Group LLC.

The agency also assigned a B3 rating to the company's new senior secured revolving credit facility and senior secured term loan.

The ratings on the existing credit facilities were affirmed and will be withdrawn at close.

The revolver will be used for general corporate purposes. Proceeds from the term loan will primarily be used to refinance the company's existing term loan and to pay a $129 million dividend to its shareholders.

Moody's will withdraw the corporate family rating and probability of default rating at Sundial Group LLC. This reflects the fact that the primary debt issuer is Sundial Group Holdings LLC.

The outlook is stable.

Moody’s said the B3 corporate family rating reflects Sundial's relatively small absolute size, narrow product focus, and high financial leverage.

Following the company’s dividend recapitalization, credit metrics will be very weak – particularly for a company with Sundial's business risk. The agency said it views this large cash dividend at a time of continued rapid growth to represent a very aggressive financial policy.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.