Moody’s rates ADS Tactical amended loan B3

Moody's Investors Service said it assigned a B3 rating to ADS Tactical, Inc.'s proposed amended $240 million senior secured term loan B due 2023 and affirmed its B2 corporate family rating and B2-PD probability of default rating.

The B3 rating on the company's previously proposed $330 million term loan was withdrawn following ADS' decision not to proceed with the new term loan and instead amend its existing term loan.

The outlook is stable.

The proposed transaction includes an amendment and maturity extension of its existing term loan to 2023 and an amendment to the company's indenture governing its notes extending the maturity date on the notes to 2023.

As part of the transaction, the company is amending the financial maintenance and restricted payments covenants in its term loan and revolver. The company also intends to extend and upsize to $200 million from $150 million, its asset-based revolving credit facility due 2020 (unrated).

Moody’s said the proposed transactions are not as favorable as the previously announced refinancing because cash interest expense will remain higher and debt maturities are being extended to 2023 instead of 2025.

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