Moody’s trims RXB loans, assigns B3

Moody’s Investors Service said it lowered RXB Holdings, Inc.’s senior secured first-lien bank credit facilities to B3 from B2 and rated its planned $150 million incremental senior secured first-lien term loan borrowings B3.

“The downgrade of the senior secured first-lien bank credit facilities reflects the addition of incremental first-lien debt and the removal of the loss absorption provided by roughly $150 million of second-lien debt cushion. The rating for the senior secured first lien revolver and term loan matches the B3 corporate family rating, as these instruments represent the preponderance of liabilities in the capital structure,” Moody’s said in a press release.

The incremental borrowings will be used to repay the unrated, second-lien term debt.

The outlook remains stable.

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