Moody's ups Cirque, rates loan B2

Moody's Investors Service said it upgraded Cirque du Soleil Holding USA NewCo, Inc.'s corporate family rating to B2 from B3 and the probability of default rating to B2-PD from B3-PD. The agency also assigned a B2 rating to both Cirque's first-lien senior secured term loan due 2030 and multicurrency revolving credit facility expiring 2028.

The term loan proceeds will be used to refinance Cirque’s first-lien and second-lien term loans due 2025 and 2027, respectively. The ratings on those loans will be withdrawn upon the close of the transaction.

"The upgrade primarily reflects Cirque's reduced leverage, which we expect to be 4.2x once the refinancing is complete," said Jason Mercer, a Moody's vice president, in a press release. "It also reflects the successful relaunch of all of Cirque's resident and touring shows."

The outlook remains stable.

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