Moody’s ups EagleView PDR, rates loans B2, Caa2

Moody's Investors Service said it assigned a B2 rating to EagleView Technology Corp.'s proposed first-lien credit facilities, consisting of a $535 million senior secured term loan and $85 million senior secured revolving credit facility, and Caa2 rating to the new $230 million second-lien term loan facility.

The agency affirmed EagleView's B3 corporate family rating and upgraded the probability of default rating (PDR) to B3-PD from Caa1-PD to reflect Moody’s use of a 50% mean family recovery rate for issuers with a dual-class bank debt capital structure.

The outlook is stable.

Proceeds from the new credit facilities plus capital raises from a new $200 million PIK preferred equity offering and significant cash equity investment from Clearlake Capital Group, LP will be used to retire EagleView's existing credit facilities, fund a cash distribution to Vista and other shareholders, and pay transaction fees.

“Although the contemplated transaction will more than double EagleView's gross debt, there is sufficient capacity at the B3 level to absorb the higher debt load given the company's rapidly expanding EBITDA, which more than doubled over the past three years,” Moody’s said in a news release.

© 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.