Moody's cuts Carestream first-lien loans

Moody's Investors Service said it downgraded Carestream Dental Technology, Inc.'s first-lien senior secured term loan and revolver due in 2024 and 2022, respectively, to B2 from B1. The agency also assigned B2 ratings to the company's planned $100 million first-lien revolver and $335 million first-lien non-fungible add-on term loan both due 2024 and Caa2 rating to $160 million second-lien term loan due 2025.

“The ratings downgrade follows the company's decision to change the terms of previously announced complete-refinancing transaction,” the agency said in a press release. On Monday, Carestream decided not to go ahead with the full refinancing of its debt after reviewing the market conditions.

The revised plan is leverage neutral, Moody’s said. Carestream's B3 corporate family rating and B3-PD probability of default rating that were last revised on Oct. 28 are unchanged.

Carestream plans to raise new money through $335 million and $160 million non-fungible add-ons to the senior secured first- and second-lien term loans due 2024 and 2025, respectively.

The proceeds and about $32 million in internal cash will be used to pay an about $513 million dividend and transaction fees.

The outlook remains stable.

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