Moody’s upgrades Vistage

Moody’s Investors Service said it upgraded its ratings for Vistage International, Inc. including the company’s corporate family rating to B2 from B3 and the probability of default rating to B2-PD from B3-PD. At the same time, Moody’s affirmed the company’s senior secured first-lien credit facilities at B2 including the proposed $50 million first-lien term loan add-on. Moody’s upgraded the company’s senior secured second-lien term loan to Caa1 from Caa2. The outlook is stable.

Proceeds from the add-on will be used to prepay $50 million of Vistage’s second-lien term loan. The company is also upsizing its first-lien revolving credit facility to $40 million from $25 million. The affirmation of the first lien credit facilities at B2 brings it in line with the CFR to reflect the sizable amount of first-lien debt in the capital structure and related reduction in loss absorption offered by the second-lien term loan.

"The one-notch upgrade of the CFR reflects Vistage’s improved credit profile since its LBO in January 2018 over which time leverage has improved to 5.5x from 7.4x from steady earnings growth and debt repayment," said Moody’s lead analyst for Vistage Andrew MacDonald, in a press release. "Going forward, we believe that the company’s leverage will remain below 6x and will benefit from improved free cash flow following the repayment of second lien debt."

© 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.