Moody’s cuts Chariot first-lien rating

Moody's Investors Service said it downgraded the ratings on Chamberlain Group's (Chariot Buyer LLC) senior secured first-lien bank credit facilities to B3 from B2 and assigned a B3 rating to its planned incremental first-lien term loan.

The agency said it also affirmed Chamberlain’s B3 corporate family rating and B3-PD probability of default rating. The company is also extending the maturity date on the revolver to five years from close. The Caa2 ratings on the existing senior secured second-lien term loan have been reviewed by the rating committee and remain unchanged.

The incremental term loan will be used to repay the senior secured second-lien term loan. Upon repayment, the senior secured second-lien term loan rating of Caa2, which remains unchanged, will be withdrawn.

“The downgrade of the first-lien term loan rating reflects the elimination of the loss absorption within the capital structure that had been provided by the second-lien term loan. The first-lien term loan now represents the preponderance of the obligations in the capital structure,” Moody’s said in a press release.

The outlook is maintained at 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.