Moody’s adds LD to Alvaria

Moody’s Ratings said it appended a limited default designator to Atlas Purchaser, Inc.'s (Alvaria) Caa1-PD probability of default rating making it Caa1-PD/LD and affirmed its ratings.

Alvaria also entered into a new credit agreement on March 20 and amended it on March 29 to reflect phase I and phase II of its debt exchange. The /LD designation will be removed in about three business days. Under the agreements, the first-lien and second-lien lenders received 90 cents-93.5 cents and 80 cents on the dollar, respectively, on their then-outstanding debt.

Concurrently, Moody's said it assigned the following ratings at Alvaria Holdco (Cayman) backed senior secured bank credit facility (first out) at B2, backed senior secured bank credit facility (second out) at Caa1, backed senior secured bank credit facility (third out) at Caa3, and backed senior secured bank credit facility (fourth out) at Caa3. The outlook on Atlas Purchaser. changed to negative from stable and Alvaria Holdco (Cayman) was assigned negative.

“The negative outlook reflects Moody's Ratings' expectation of continued operating challenges and pressured cash flow generation in the next 12-18 months. It also considers that although Alvaria's near-term liquidity position is supported by new money, temporary PIK features, and a covenant holiday; once these factors subside there is risk of another default. There continues to be uncertainty around the inflection point of Alvaria's bookings and sales declines. Moody's Ratings expects Alvaria's leverage to be in the 10x range in the next 12-18 months,” the agency said in a press release.

© 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.