Moody’s trims Sharp first-lien rating

Moody's Investors Service said it downgraded the ratings on Sharp Services, LLC's senior secured first-lien credit facilities to B3 from B2 and affirmed its B3 corporate family rating and B3-PD probability of default rating.

The company intends to raise about $150 million in incremental first-lien-term loan borrowings. The proceeds along with balance sheet cash will be used to repay the unrated $158 million second-lien term loan and pay fees and expenses related to this transaction.

“The downgrade of the senior secured first lien debt instruments reflects the addition of approximately $150 million of incremental first lien debt and the removal of the loss absorption provided by $158 million of second-lien debt cushion. The ratings on the senior secured first-lien revolver and term loans match the B3 CFR, as these instruments represent the preponderance of debt in the capital structure,” Moody’s said in a press release.

The outlook remains stable.

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