Moody’s assigns HCP Global loans B2 and B3

Moody's Investors Service said it assigned a B2 corporate family rating to HCP Global Ltd.

At the same time, the agency assigned a provisional B2 rating to HCP's $230 million first-lien term loan due 2021, a provisional B2 rating to its $50 million first-lien revolving credit facility due 2019 and a provisional B3 rating to its $100 million second-lien term loan due 2022.

The outlook is stable.

HCP and HCP Packaging Hong Kong Ltd. are co-borrowers on a joint and several basis for the proposed term loans and revolving credit facility.

Proceeds from the term loans and existing cash on hand will be used to repay existing term loans and to upstream dividends to HCP's private equity sponsor, Texas Pacific Group.

Moody’s said the ratings on the term loans and the revolving credit facility benefit from asset pledges and guarantees from all substantial subsidiaries, excluding HCP's Chinese subsidiaries.

However, the first-lien term loan and revolving credit facility are not notched up from the corporate family rating because a large part of the tangible assets are not pledged. This assessment also incorporates Moody's view that HCP's assets would not support a full recovery on either facility in a distressed scenario, the agency said.

© 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.