Moody’s gives Colibri loans B2

Moody's said it assigned B2 ratings to McKissock Investment Holdings, LLC's (Colibri) planned senior secured first-lien bank credit facilities consisting of a revolver and term loan. Concurrently, the agency affirmed Colibri’s B3 corporate family rating and B3-PD probability of default.

Proceeds from the proposed $645 million first-lien term loan and unrated $180 million second-lien term loan along with new equity from its sponsor and a small amount of balance sheet cash will be used to repay Colibri's debt of $404 million, fund the acquisition of Becker Professional Education and OnCourse Learning, and pay related fees and expenses. At the same time, Colibri is raising a new $50 million five-year revolving credit facility to be undrawn at close due 2027.

“The transaction is credit negative because of the increase in debt and leverage. Pro forma for the proposed transaction, Moody's adjusted debt-to-EBITDA leverage will increase from the mid 6x for the LTM period ended Dec. 31, 2021, to the mid 7x range (Moody's adjusted EBITDA deducts capitalized content development cost),” the agency said in a press release.

The outlook is stable.

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