Moody's cuts V.Group loan

Moody's Investors Service said it lowered AI Mistral Holdco Ltd.'s (V.Group) senior secured bank credit facilities issued by AI Mistral (Luxembourg) Subco Sarl to Caa2 from Caa1.

Concurrently, the agency affirmed V.Group's corporate family rating at Caa2 and probability of default rating at Caa2-PD and appended an /LD indicator pointing to a limited default. Moody's also revised the rating outlook to stable from negative for both issuers.

The rating action reflects V.Group’s recent balance sheet restructuring. The restructuring included forgiving $98 million of second lien debt and up-tiering the remainder to be pari passu with the first-lien debt and extending the maturities of the revolving acquisition credit facility.

“Positively, V.Group's shareholders made a $50 million equity infusion as part of the restructuring. Also, the ‘springing’ net leverage covenant in the revolving credit facility was replaced with a minimum liquidity and the interest cost was reduced significantly,” Moody’s said in a press release.

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