Moody’s cuts Atlantic first-lien loans

Moody’s Investors Service said it downgraded KKR Apple Bidco, LLC’s (Atlantic) first-lien bank credit facilities to B2 from B1. The company plans to raise $750 million in incremental first-lien term loan borrowings.

The proceeds will be used to pay down $350 million of second-lien-term debt and to make a $385 million dividend to shareholders. Moody's said it took no action on the senior secured second lien rating of Caa1 and expects that this rating will be withdrawn upon being repaid.

“The downgrade of the senior secured first-lien bank credit facilities reflects the incremental first-lien debt that comes from the refinancing and the dividend recap. It also reflects the removal of the second-lien debt cushion that was previously supporting the first-lien debt,” the agency said in a statement.

Moody’s also affirmed Atlantic’s B2 ratings.

The outlook remains stable.

© 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.