Moody's assigns B2 to Tivity facilities

Moody's Investors Service said it assigned B2 ratings to Tivity Health, Inc.'s planned senior secured first-lien credit facilities, which will consist of a $100 million revolver due 2026 and a $400 million term loan due 2028.

Term loan proceeds and balance sheet cash will be used to repay the $430 million outstanding first-lien term loan and related expenses. Moody's will withdraw the B2 rating on the outstanding first-lien credit facilities upon the transaction’s close.

The proposed refinancing transaction has no effect on Tivity's B2 corporate family rating, B2-PD probability of default rating, SGL-1 speculative grade liquidity rating and stable outlook, the agency said.

“Moody's considers this refinancing transaction as overall credit positive as the transaction is expected to lower debt and leverage, extend the maturity profile and reduce mandatory annual amortization to 1% of principal,” the agency said in a press release.

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