Moody's rates Beasley notes B3

Moody's Investors Service said it affirmed Beasley Mezzanine Holdings, LLC's (Beasley) B3 corporate family rating and assigned a B3 rating to the proposed $280 million senior secured notes due 2026.

Concurrently, Moody's upgraded the probability of default rating to B3-PD from Caa1-PD. The outlook remains negative.

Net proceeds from the note will be used to repay the existing revolver, term loan, promissory note and George Beasley loan, with the remaining proceeds to provide additional cash to the balance sheet.

“The PDR was upgraded to B3-PD as Beasley will effectively have only one class of debt consisting of the secured notes, which will not be subject to financial maintenance covenants. Beasley will not have a revolving credit facility in place following the transaction, but the Speculative Grade Liquidity (SGL) rating is unchanged at SGL-3 due to the increase in cash available on the balance sheet,” Moody’s said in a news release.

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