Moody’s cuts Montreign loan, rates loan B3

Moody's Investors Service said it affirmed Montreign Operating Co., LLC's B3 corporate family rating and B3-PD probability of default rating following the company's decision to modify its proposed debt offering to include a $70 million first-lien term loan A along with a $390 million first-lien term loan B.

The agency also downgraded the company's $390 million term loan B to B3 from B2.

A B3 rating was assigned to the $70 million first-lien term loan A.

The outlook remains stable.

Montreign's $390 million term loan B, initially rated on Nov. 18, was downgraded to B3 from B2 to reflect the fact that company's debt structure will now be an all first-lien structure as opposed to the first- and second-lien structure that was initially proposed.

As a result, the $390 million term loan B will no longer benefit from the credit support provided by second-lien debt, and will now be rated the same as the company's B3 corporate family rating.

The downgrade is not the result of any change in Moody's view of Montreign's fundamental credit profile.

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