Moody’s cuts Caliber, rates loans B3

Moody's Investors Service said it downgraded Caliber Collision’s (Wand NewCo 3, Inc.) corporate family rating to B3 from B2, its probability of default rating to B3-PD from B2-PD, and its senior secured first-lien bank credit facilities ratings to B3 from B1. The agency concurrently assigned a B3 rating to the extended first-lien term loan due 2031 and a B3 rating to the extended senior secured first-lien revolving credit facility maturing 2029.

The Caa1 senior secured second-lien bank credit facility rating remains unchanged, the agency said.

"Caliber is refinancing its existing capital structure and increasing its debt levels to pay a $1 billion dividend to shareholders, which will cause credit metrics to weaken with little cushion to absorb any performance shortfalls or further increases in debt," said Stefan Kahandaliyanage, a Moody’s vice president and senior analyst with, in a press release.

"While leverage is increasing meaningfully, we expect good liquidity because the refinancing extends maturities and because of our expectation for continued positive operating performance and positive free cash flow," Kahandaliyanage added.

The outlook is stable.

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