Moody's gives West Marine loans Ca, C

Moody's Investors Service said it assigned a Ca rating to Rising Tide Holdings, Inc.'s (West Marine) senior secured first-lien term loan 1A and assigned a C rating to both the senior secured first-lien term loan 1B and second-lien term loan 2A.

The agency concurrently affirmed West Marine's Caa2 corporate family rating and Caa2-PD/LD probability of default rating and appended the PDR with the /LD, limited default, designation reflecting the close of the company's debt exchange. Because the exchange closed with full participation, Moody's withdrew ratings for the company's senior secured first-lien term loan and senior secured second-lien term loan. The outlook remains negative.

“The assignments and affirmation reflect governance considerations which include the successful completion of the debt exchange as previously outlined. Moody's views this transaction as a distressed exchange, which is an event of default under Moody's definition. Moody's will remove the /LD designation from the PDR in three business days,” the agency said in a press release.

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