Moody’s cuts UKG, rates notes B2

Moody's Investors Service said it downgraded UKG, Inc.'s first-lien senior secured credit facilities to B2 from B1 and assigned a B2 to the company's planned senior secured notes.

The agency said it also affirmed the Caa1 second-lien secured term loan ratings. The company's B2 corporate family rating, B2-PD probability of default rating and negative outlook are unchanged.

“The downgrade of the first-lien debt reflects the greater mix of first-lien debt in the capital structure following the upsizing of this debt class and subsequent downsizing of the second-lien debt. This shift will result in the first-lien debt comprising the preponderance (over 85%) of the total debt in the capital structure and is therefore rated B2, the same as the B2 CFR,” the agency said in a press release.

UKG is refinancing and upsizing its first-lien debt facilities and raising new secured notes to refinance outstanding first-lien and a portion of the second-lien debt.

© 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.