Moody’s upgrades CDW, rates notes B1

Moody's Investors Service said it assigned a B1 rating to the proposed $525 million eight-year senior unsecured notes to be issued by CDW LLC, a wholly owned subsidiary of CDW Corp.

CDW's other wholly owned subsidiary, CDW Finance Corp., will be a co-borrower.

As part of the action, the agency upgraded CDW's corporate family rating to Ba3 from B1, probability of default rating to Ba3-PD from B1-PD, senior unsecured notes to B1 from B3 and senior secured credit facility to Ba2 from Ba3.

The outlook was changed to stable from positive.

The actions reflect the company's significant deleveraging and refinancing efforts over the last couple of years, which delivered over $240 million in proforma annual interest expense savings since 2010.

Moody's affirmed the company's SGL-1 short term liquidity rating.

Proceeds from the new notes will be used for general corporate purposes, including refinancing the entirety of the remaining $506 million of senior secured notes due 2019. The ratings on the senior secured notes due 2019 will be withdrawn upon the close of transaction.

© 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.