Moody's cuts UTGR outlook to negative

Moody's Investors Service said it changed the outlook on UTGR, Inc. to negative from stable and affirmed the company's B1 corporate family rating, B1 first-lien $125 million revolving credit facility, B1 first-lien $245 million revolving term loan B and B2 second-lien $125 million revolving term loan C.

The change in the outlook reflects expected higher pro forma and peak leverage that will now follow an enlarged redevelopment budget, the agency said. Originally planned to be a $125 million expansion, now the expansion will require an additional $95 million due to higher costs and a larger than originally planned scale of renovation.

It is expected that the bulk of the overrun will be funded by new borrowing with an equity contribution supplementing the balance.

© 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.