Moody's gives Lion Gables loan Ba2; view developing

Moody's Investors Service said it assigned a provisional Ba2 prospective rating to the proposed $2.125 billion senior secured credit facility of Lion Gables Realty Ltd. Partnership, the surviving operating partnership following the closing of Gables' previously announced transaction to be acquired by ING Clarion.

In addition, Moody's said it downgraded the current ratings of Gables Residential Trust (senior unsecured to Ba3).

The outlook is developing for the planned credit facility due to the execution risk in closing the merger transaction and the associated recapitalization plan, the agency said.

Moody's stated that after the closing of the merger, Gables will be managed with a more highly leveraged capital structure that includes 100% secured debt.

Moody's said it rated the prospective credit facility and term loan provisional Ba2, reflecting the adequate quality and diversity of apartment property collateral supporting these facilities.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.