Moody's assigns B3 to Upstream loan

Moody's Investors Service said it assigned a B3 rating to Upstream Newco, Inc.'s $35 million incremental senior secured first-lien term loan due November 2026.

There are no changes to Upstream's other ratings, including the Caa1 corporate family rating, the Caa1-PD probability of default rating, the B3 rating on the existing senior secured first-lien credit facilities, and the Caa3 rating on the senior secured second-lien term loan, the agency said.

Upstream plans to use the loan to provide additional liquidity. This includes repayment of the $15 million drawn on the $50 million revolver at March 31 and the rest going to increase cash on the balance sheet. “Debt/EBITDA will rise slightly from 8.1x at March 31, to 8.2x pro forma the debt issuance and subsequent revolver paydown,” Moody’s said in a press release.

The outlook remains stable.

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