Moody’s rates Bay Club loans Ba3, B3

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to BC Equity Ventures LLC (Bay Club).

The agency also assigned Ba3 ratings to the company's proposed $20 million super-priority revolving credit facility and $75 million asset sale bridge loan, and a B3 rating to the proposed $350 million senior secured term loan.

The outlook is stable.

Proceeds from the bridge loan and term loan will be used to refinance Bay Club’s existing $396 million of debt, fund acquisitions and pay for fees and expenses.

Within six months, the company expects to sell one of its properties and use the proceeds to repay the $75 million bridge loan, fund the redevelopment of that club and pay related fees, expenses and taxes.

Moody's said it considers all credit metrics on a pro-forma basis for the sale of this property, which Bay Club is under a binding contract to sell at a previously agreed upon price within a year.

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