Moody's snips Aventiv

Moody's Investors Service said it downgraded Aventiv Technologies, LLC's $225 million senior secured super-priority revolving credit facility due Aug. 2, 2024, to B2 from B1, $1.087 billion senior secured first-lien term loan due Nov. 1, 2024 to Caa3 from B2 and $283 million senior secured second-lien term loan due Nov. 3, 2025 to Ca from Caa2.

The agency, however, slashed Aventiv’s corporate family rating to Caa3 from B3 and its probability of default rating to Caa3-PD from B3-PD. The outlook was dropped to negative from positive.

“The downgrades and change in outlook to negative reflect Aventiv's high debt leverage (Moody's adjusted), negative free cash flow and inability to execute a successful refinancing transaction in the debt capital markets. Under a marketed transaction structure in mid-2023 that sought the refinancing of all outstanding debt, including substantial upcoming near-term debt maturities, an accompanying new $400 million cash equity investment by the company's sponsor proved insufficient to incent demand.

“Aventiv's liquidity has deteriorated significantly as a consequence given debt maturities totaling around $1.3 billion coming due within the next 12 months. The downgrades and negative outlook reflect Aventiv's increasingly untenable capital structure and the potential for a debt exchange or other restructuring that Moody's would view as a default event,” the agency said in a press release.

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