Moody's: AlixPartners add-on is credit negative

Moody's Investors Service said that AlixPartners, LLP's proposed term loan add-on is credit negative due to its adverse impact on leverage.

The proposed transaction does not impact the company's ratings, including its B2 corporate family rating and B2-PD probability of default rating, as well as B2 ratings for its first-lien senior secured credit facilities.

The outlook remains stable.

The company plans to raise an incremental ruro-equivalent $390 million senior secured first-lien term loan to fund a $381 million shareholder distribution.

Pro forma for the transaction, the company's adjusted debt-to-EBITDA ratio will increase to 5.7x from 4.6x for the 12 months that ended March 31, 2019, which is within the range expected for AlixPartners to maintain its B2 corporate family rating, Moody's said.

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