Moody's gives LSF11 A5 add-on B1

Moody's Investors Service said it assigned a B1 rating to LSF11 A5 HoldCo LLC's planned $350 million non-fungible incremental senior secured first-lien term loan.

The B2 corporate family rating, the B2-PD probability of default rating, the B1 rating on the senior secured first-lien revolving credit facility, the senior secured first-lien term loan as well as Caa1 rating on the senior unsecured notes due 2029 are unchanged.

The loan and cash from the balance sheet will be used to fund a dividend of $500 million to shareholders as well as pay fees and expenses.

“Moody's believes this is credit negative as it reflects a more aggressive financial policy than anticipated as evidenced by Lone Star's decision to increase debt to extract a sizable dividend,” the agency said in a press release, which also noted the credit metrics remain appropriate for the rating.

The outlook is also 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.