Moody’s rates TWCC facility B1

Moody's Investors Service said it assigned a B1 (LGD3, 34%) rating to TWCC Holding Corp.'s (Weather Co.; B2 corporate family rating) partially amended and extended first-lien senior secured bank credit facility.

The amendments will extend the maturity dates of the revolving credit facility and $1 billion of the first-lien term loan by three years. The transaction will be accompanied by a $50 million repayment of the non-extended first-lien term loan and $50 million repayment of the $625 million second-lien term loan which is rated Caa1. Terms of the company's new credit facility remain largely unchanged except for the extension and an increase in the interest rates to Libor 400 basis points to 450 bps.

The outlook is stable.

Moody’s said the transactions will positively impact leverage due to debt repayment of $100 million and pro forma leverage at 3/31/2015 will decline by 4/10 of a turn from 7.5 times to 7.1 times.

The amendment and extension will also strengthen TWCC's debt maturity profile by pushing out the maturity date on $1 billion of first-lien term loan from 2017 to 2020 and the revolver maturity date from 2016 to 2019.

The increased pricing will weigh on the company's free cash flows but the agency expects TWCC to generate sufficient cash flows to cover incremental costs associated with the amendments, Moody’s said.

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