Moody’s snips Flexera credit facility

Moody’s Ratings said it lowered Flexera Software LLC’s backed senior secured first-lien credit facility ratings, including the term loan B1 and senior secured first-lien revolving credit facility, to B2 from B1. The agency also affirmed the B2 corporate family and B2-PD probability of default ratings.

The downgrade reflects the planned repayment of the unrated senior secured second-lien term loan with proceeds from a $210 million incremental senior secured first-lien term loan and balance sheet cash, which removes the cushion provided to first-lien lenders in default, the agency explained.

“The transaction will lead to a modest decline in leverage and reduced interest expense as a result of the lower interest rate on the first-lien term loan and the $50 million decrease in outstanding debt,” Moody’s said in a press release.

The outlook is stable.

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