Moody’s cuts DigiCert, revolver; rates loan B2

Moody's Investors Service said it affirmed DigiCert Holdings, Inc.'s B3 corporate family rating, assigned a B2 rating to the new $260 million first-lien term loan and downgraded the rating for its existing first-lien revolving credit facility to B2 from B1.

The outlook is stable.

DigiCert will use the proceeds from the new term loan and a portion of its cash on hand to refinance the existing $218 million first-lien term loan and repay a portion of the existing second-lien term loan. The transactions will yield a modest reduction in interest expense.

The agency will withdraw the rating for the existing first-lien term loans upon the close of the financing.

Moody’s said the downgrade of the first-lien revolving credit facility to B2 and the B2 rating for the new first-lien term loan reflect the change in the capital structure and the resulting lower recovery expectations for the first-lien debt. The new capital structure will have a higher amount of first-lien debt and a reduced loss-absorption layer of second lien debt.

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