Moody’s rates McGraw Hill facilities B3, notes Caa3

Moody’s Investors Service said it assigned a B3 rating to McGraw Hill LLC’s proposed credit facilities and a Caa3 rating to its planned up to about $800 million of junior priority secured notes due November 2024. The agency also placed all its McGraw Hill ratings on review for upgrade.

“The review was prompted by the company’s announcement of a debt refinancing intended to extend its debt maturities, which followed stronger than previously anticipated fiscal Q2 2021 operating performance and the company’s recent extension of its $150 million AR facility to August 2023,” Moody’s said in a press release.

McGraw plans to extend its first-lien term loan to November 2024 and issue the notes. The new junior priority secured notes will be issued in connection with an exchange for up to $400 million of unsecured notes, an exchange for $191 million of term loans of its parent MHGE Parent, LLC and new financing commitments.

McGraw also expects to extend the revolving credit facility’s maturity to November 2023, albeit with a reduced commitment, and downsize the first-lien term loan by up to $200 million.

“If completed as proposed, the transaction would be credit positive because it eliminates near term refinancing risks and extends access to external liquidity without materially increasing cash interest expense or leverage,” Moody’s said.

© 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.