Moody’s cuts Arcline first-lien rating

Moody’s Investors Service said it downgraded its first-lien rating for Arcline FM Holdings LLC (Fairbanks Morse Defense) to B3 from B2 but affirmed its B3 corporate family rating, B3-PD probability of default rating and Caa2 senior secured second-lien rating.

“The downgrade of the senior secured first-lien rating reflects the loss of notching uplift following the proposed change to FMD's debt structure. FMD will refinance $122 million of its second-lien term loan maturing June 2029 with incremental first-lien debt, thereby reducing the first loss absorption the second-lien debt provides in the event of a restructuring,” Moody’s said in a press release.

FMD is also repricing the $209 million non-fungible first-lien term loan from November.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.