Moody’s ups Insight Global loans to Ba3

Moody's Investors Service said it affirmed IG Investments Holdings, LLC's (the entity that indirectly owns Insight Global, LLC) B1 corporate family rating and B1-PD probability of default rating.

In the same action, the agency upgraded the rating on the company's first-lien senior secured credit facilities, consisting of a $704 million term loan due 2021, a $37 million term loan due 2019 and a $60 million revolving credit facility expiring 2019, to Ba3 from B1.

The outlook is stable.

Moody’s said the action was prompted by Insight Global's contemplated transactions, which will include an equity purchase by Leonard Green & Partners and Crescent Capital from the existing equity sponsor Ares Management and other investors, and a proposed $170 million second lien senior secured term loan due 2023 (unrated).

The combined proceeds from these transactions and cash on hand will be used to fund a distribution of approximately $685 million to the existing shareholders.

The company is also pursuing an amendment to its existing first-lien credit agreement to allow for incremental debt and a shareholder distribution, and to include additional permitted holders.

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