Moody’s gives TierPoint loans B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to TierPoint, LLC.

The agency also assigned B2 ratings to the company's proposed $360 million senior secured first-lien credit facilities, which consist of a $320 million term loan due 2021 and a $40 million revolver due 2019, and a Caa2 rating to the proposed $100 million senior secured second-lien term loan due 2022.

The outlook is stable.

Proceeds from the new term loans will be used to refinance existing debt at TierPoint and fund the acquisition of Xand Holdings, LLC.

The ratings for the debt instruments reflect both the B3-PD probability of default of TierPoint and individual loss given default assessments. The senior secured first-lien credit facilities are rated B2 (LGD3), one notch higher than the corporate family rating given the support from the Caa2 (LGD6) rated senior secured second-lien term loan.

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