Moody's gives Thrasio DIP loans B1, Caa1

Moody's Ratings said it assigned a B1 rating to the $90 million senior secured super-priority debtor-in-possession new money term loan (NMTL) and a rating of Caa1 to the $270 million senior secured super-priority DIP rollup term loan (RUTL) of Thrasio, LLC.

The borrower’s parent Thrasio Holdings Inc. filed for bankruptcy on Feb. 28. Thrasio Holdings will guarantee the loans.

“The higher rating on the $90 million NMTL reflects its senior position in regard to payment priority versus the RUTL. The facilities have the same super-priority collateral lien position, but the NMTL has payment priority relative to the RUTL. The collateral coverage of the NMTL, factoring in the payment priority, is thus stronger than for the RUTL. Both tranches benefit from a security package that includes a super-priority lien on substantially all the assets of the borrower,” Moody’s said in a press release.

The agency assigned the ratings on a point-in-time basis.

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