Moody’s rates Odyssey loans B2

Moody’s Investors Service said it assigned B2 ratings to Odyssey Logistics & Technology Corp.’s new senior secured first-lien revolving credit facility and term loan and revised the outlook to positive from stable. The agency also affirmed the company’s B2 corporate family rating and B2-PD probability of default rating.

Odyssey wants to amend and extend the maturity of its about $500 million first-lien term loan by three years to October 2027. The company also plans to boost its first-lien revolving credit facility to $125 million from $60 million and extend it through July 2027.

Using available cash, Odyssey will repay its $106 million second-lien term loan due October 2025.

“The new facilities will represent the preponderance of the debt in the capital structure and will no longer benefit from the loss absorption that had been provided by the second-lien debt. They are therefore rated B2, the same level as the CFR,” Moody’s said in a press release.

The positive outlook reflects the elimination of refinancing risk and lower leverage and interest costs associated with the pay down of higher-cost second-lien debt, the agency said.

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