Moody’s trims Parexel first-lien loans

Moody’s Investors Service said it downgraded Parexel International, Inc.’s senior secured first-lien bank credit facility to B2 from B1 but affirmed its B2 corporate family and probability of default ratings.

The company plans to raise $550 million in incremental first-lien term loan borrowings and use the loan to repay $550 million of unrated second-lien term debt.

“The downgrade of the senior secured first-lien bank credit facilities reflects the addition of $550 million of incremental first-lien debt and the reduction of the loss absorption provided by second-lien debt cushion to $350 million from $900 million. The rating for the senior secured first-lien revolver and term loan matches the B2 corporate family rating, as these instruments represent the majority of liabilities in the capital structure,” Moody’s said in a statement.

The outlook is stable.

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