Moody's shifts Russell Investments view to negative

Moody's Investors Service said it changed the outlook of Russell Investments Cayman Midco, Ltd. (Russell Investments) to negative from stable based on a $407 million incremental borrowing on its senior secured term loan due May 2025 to fund a dividend to shareholders.

Concurrently, Moody's affirmed Russell Investments' Ba2 corporate family rating and the Ba2 senior secured term loan and revolving credit facility ratings.

The term loan borrowing and balance sheet cash will be used to pay a $406 million dividend and prepay $107 million in debt maturing in 2023.

This is the company's third dividend recap since its private equity sponsors bought it in 2016, Moody’s said.

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