Moody's: New Constellis loan extension a distressed exchange

Moody’s Investors Service said the recent maturity extension of New Constellis Borrower, LLC's first-lien and second-lien term loans is a distressed exchange.

A distressed exchange is considered by Moody's to be an event of default.

Moody's changed Constellis' probability of default rating to Caa2-PD/LD from Caa2-PD to reflect the limited default. Moody’s expects that the limited default designation will be removed and the PDR will revert to Caa2-PD after three business days.

The transaction does not affect Constellis' Caa2 corporate family rating, Caa2 senior secured first-lien rating, Ca senior secured second-lien rating and the negative outlook, the agency said.

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