Moody's rates TriZetto loan B1

Moody's Investors Service said it affirmed the B1 corporate family rating of TriZetto Group, Inc. and maintained its stable outlook in connection with the company's plans to repay its $187.5 million of outstanding senior notes due in 2016.

The company is pursuing an amendment to its existing credit agreement to facilitate the repayment of junior debt, Moody's said, and subsequently plans to raise about $100 million of incremental term loan C through exercise of the accordion feature in its existing credit agreement.

The agency said it assigned a B1 (LGD 3, 33%) rating to the proposed $100 million senior secured term Loan C facility due 2015.

The proceeds will be used to redeem the senior notes and pay the call premium and fees and expenses for the transaction, the agency said.

Moody's also said it lowered TriZetto's probability of default rating to B2 from B1, along with its $65 million senior secured revolving credit facility due 2014, $71 million senior secured term loan A facility due 2014 and $315 million senior secured term loan B facility due 2015 to B1 (LGD 3, 33%) from Ba3 (LGD 3, 34%).

The downgrades reflect the resulting change in capital structure following the transaction, Moody's said.

TriZetto's debt structure will essentially comprise of the senior secured bank debt only, which previously received support from the structurally subordinate senior notes, the agency said.

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