Moody’s cuts BroadStreet loans to B2

Moody’s Investors Service said it downgraded BroadStreet Partners Inc.’s senior secured credit facility ratings to B2 from B1.

The downgrade follows the issuer reporting it is increasing its senior secured term loan borrowings by $1.2 billion through a new $735 million term loan and a new C$588 million term loan, the agency said. Westland Insurance Group, Ltd. will be a co-borrower on the Canadian dollar loan.

BroadStreet will use the loans to help finance the acquisition of Westland and pay related fees and expenses. Other financing sources will include an equity contribution from BroadStreet's private equity sponsor, Ontario Teachers' Pension Plan, along with rollover equity from Westland's owners.

Additionally, BroadStreet plans to upsize its revolver by $108.5 million to a total of $531.5 million.

The agency concurrently affirmed its B3 ratings on Broadstreet and its senior unsecured note rating at Caa2. The outlook for BroadStreet is stable.

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