Moody’s rates ThoughtWorks loans B2

Moody's Investors Service said it affirmed ThoughtWorks, Inc.'s B2 corporate family rating, B2-PD probability of default rating and B2 senior secured first-lien term loan and revolver ratings.

The agency also assigned a B2 rating to the company’s proposed senior secured first-lien term loan and incremental delayed-draw senior secured first-lien term loan.

The outlook remains stable.

ThoughtWorks announced it plans to issue a $240 million term loan due 2024, an incremental $30 million term loan due 2024, available on a delayed-draw basis, and increase the revolver due 2022 to $60 million from $35 million. Proceeds from the new term loans and balance sheet cash will be used to refinance its existing $200 million term loan due 2024, fund expected contingent employee retention payments due in 2018 and pay related transaction fees and expenses.

Upon closing, the rating on the existing term loan will be withdrawn.

"While the increase in debt is a negative credit development, the B2 CFR already incorporated Moody's expectations that contingent retention payments due in 2018 of around $80 million could be funded with incremental debt," Moody's senior credit officer Edmond DeForest said in a news release.

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