Moody's assigns Ba1 to Celestica loans

Moody's Investors Service said it assigned Ba1 ratings to Celestica Inc.'s $365 million senior secured term loan A and new $600 million senior secured revolving credit facility, both mature in 2026 depending on certain conditions. All of Celestica's other ratings, including its Ba2 corporate family rating, remain unchanged.

“Celestica's first-lien credit facilities are rated Ba1, one notch above the CFR. The company's instrument-level ratings are one notch above the Ba2 CFR because of the comprehensive security package which provides first access to realization proceeds as well as a result of the cushion provided by the relatively large amount of payables that we treat as an unsecured liability in the company's capital structure,” Moody’s said in a press release.

The proceeds from the first-lien term loan A were used to repay a $145 million tranche of the company's term loan B, with the remainder being used pay down the $215 million Celestica drew on its revolving credit facility. The company used those funds to partially finance the $300 million acquisition of Singapore based PCI Private Ltd. that closed on Nov. 1. The company also upsized its revolving credit facility to $600 million from $450 million.

The outlook is 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.