Moody's upgrades One Call debt to B2

Moody's Investors Service said it affirmed One Call Corp.'s corporate family rating at Caa1 and the probability of default rating at Caa1-PD.

Moody's also upgraded the ratings on One Call's first-lien credit facilities and notes to B2 from B3.

The outlook is stable.

The proceeds from a new $330 million term loan will be used to repay revolver borrowing of $53 million, repay $250 million of the first-lien senior secured term loan and add $9 million of cash to One Call's balance sheet, the agency said.

The proposed new term loan will have a second-lien on the company's assets, but will rank ahead of the existing 10% second-lien notes due 2024.

These 10% notes will now effectively be secured by a third-lien position on the company's assets, Moody's said.

The agency said it affirmed the Caa3 on these notes as the amount of total secured debt ahead of them remains essentially unchanged.

The upgrade of the first-lien credit facilities and notes reflects the additional first loss absorption provided by the new $330 million term loan and reduction in amount of total first-lien debt, Moody's said.

The proposed refinancing transaction, while effectively leverage neutral, is credit positive as it enhances One Call's liquidity and extends its debt maturity profile, the agency added.

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