Dex Media (DXM) Enters Forbearance Agreement With Lenders

by Shelton on December 1st, 2015

filed under Secured Credit

Dex Media (NASDAQ: DXM) today announced it has entered into a forbearance agreement with lenders under its senior secured credit facilities. The agreement is effective through November 23, 2015, pending certain conditions.

In addition, the Company announced it has received a term sheet and restructuring support agreement (RSA) from the ad hoc committee of lenders holding more than 50% of its senior secured credit facilities. The Company and its advisors are reviewing the term sheet and RSA, and are continuing negotiations with the Company’s lenders with a goal of agreeing on terms of a consensual restructuring.

“Constructive discussions with our lenders over the past few months have now led to a term sheet and restructuring support agreement. The forbearance agreement provides additional time to agree on a plan to restructure our debt facilities,” said Joe Walsh, Dex Media President and CEO. “We remain focused on implementing our long term business plan and putting in place the right strategic, operational and financial structure to support our business for many years to come.”

As previously announced, the Company elected to take advantage of a 30-day grace period to make an interest payment due on its senior subordinated notes, which was due on September 30, 2015. The Company did not make the interest payment within the grace period, and as a result, the Company’s bondholders have declared the senior subordinated notes to be immediately due and payable.

The Company’s liquidity position remains strong, with a cash balance of approximately $205.3 million as of October 30, 2015, and its employees, clients and vendors should see no disruption to current operations as a result of this announcement.

Moody’s downgrades Getty’s CFR to Caa1 reflecting additional delay for …

by Shelton on November 23rd, 2015

filed under Secured Credit

Roughly $2.4 billion of debt affected

New York, November 04, 2015 — Moodys Investors Service downgraded Getty Images, Inc.s
(Getty) Corporate Family Rating one notch to Caa1 from B3 and the Probability
of Default Rating to Caa1-PD from B3-PD reflecting Moodys
view that the company will need more time than previously expected to
improve credit metrics, including leverage and free cash flow.
Moodys also downgraded the companys senior secured credit
facilities to B3 and the senior unsecured notes to Caa3. In addition,
the company announced plans to issue $252.5 million of new
10.5% senior secured notes in exchange for $100 million
of cash plus roughly $240 million of existing 7% senior
unsecured notes representing a 36% discount to face value.
Moodys views this transaction as a distressed exchange and will
assign a Limited Default or LD to the company
upon closing. The LD designation will be removed in three days.
The rating outlook is changed to stable from negative.

Issuer: Getty Images, Inc.

..Downgrades:

.Corporate Family Rating (CFR): Downgraded
to Caa1 from B3

.Probability of Default Rating (PDR):
Downgraded to Caa1-PD from B3-PD

.Sr Secured 1st lien Term Loan due 2019: Downgraded
to B3, LGD3 from B2, LGD3

.Sr Secured 1st lien Revolving Credit Facility due 2017:
Downgraded to B3, LGD3 from B2, LGD3

.$550 million Senior Unsecured Notes due 2020:
Downgraded to Caa3, LGD6 from Caa2, LGD6

..Outlook Actions:

.Outlook changed to Stable from Negative

RATINGS RATIONALE

The downgrade of Getty Images corporate family rating to Caa1 reflects
Moodys updated projections indicating excessive leverage with debt-to-EBITDA
exceeding 9.0x (including Moodys standard adjustments) through
the end of 2016 as a result of high single digit percentage revenue declines
in the companys Midstock segment for FY2015 and free cash flow-to-debt
of less than 1% over the next 12 months. As a result,
the company will need more time to turnaround operating performance sufficiently
to restore credit metrics to be in line with a higher debt rating.
To the extent the company completes its note exchange as planned,
leverage would increase slightly and annual free cash flow would erode
by roughly $10 million from higher interest payments. Although
cash balances would increase initially by roughly $90 million post-transaction,
planned funding of growth investments and higher debt service will leave
the company with only adequate liquidity and limited ability to reduce
debt balances over the next 18 months. Getty expects targeted growth
investments to enhance revenue and EBITDA; however, Moodys
believes timing and the extent to which these benefits will be realized
is uncertain. Moodys also views the company as having greater
risk related to its financial policies as we believe Gettys growth investments
should be funded with equity capital given the companys current high
leverage. Incorporating preliminary results through September 2015,
Moodys expects revenue to increase in the low-single digit
percentage range over the next 12-18 months; however,
we do not expect EBITDA to grow until after 2016 due to targeted investments.
The company has an undrawn revolver maturing in 2017 and a $1.85
billion covenant-lite term loan maturing in 2019, followed
by the note maturity in 2020. Moodys believes an orderly
refinancing of the debt facilities will require debt-to-EBITDA
closer to 6.5x, similar to leverage at closing of the October
2012 buyout by Carlyle. Risk of another distressed exchange remains
high to the extent the company is not able to perform in line with its
operating plan.

The stable rating outlook reflects Moodys expectations that revenue
will grow in the low single-digit percentage range over the next
18 months and that debt-to-EBITDA will remain elevated over
this period due to an increase in SGamp;A from planned growth investments.
The outlook incorporates free cash flow-to-debt of less
than 1% (including Moodys standard adjustments) over the
next 12 months reflecting extraordinary tax payments and increased capital
spending related to targeted investments. Ratings could be downgraded
if operating performance tracks below Moodys expectations or if we believe
the company will not be able to reduce leverage sufficiently to refinance
the term loan in advance of its 2019 maturity in an orderly fashion.
Ratings could also be downgraded if liquidity deteriorates or the company
issues additional debt in excess of nominal levels. While unlikely
in the next 18 months, ratings could be upgraded if the company
demonstrates stability in Midstock revenue, free cash flow-to-debt
improves to the mid single digit percentage range, and debt-to-EBITDA
is sustained comfortably below 6.0x (including Moodys standard
adjustments). Moodys would also need assurances that the
company will be able to refinance near term maturities in an orderly fashion.

The principal methodology used in these ratings was Global Broadcast and
Advertising Related Industries published in May 2012. Please see
the Credit Policy page on www.moodys.com for a copy of this
methodology.

Headquartered in Seattle, WA, Getty Images, Inc.
is a leading creator and distributor of still imagery, video and
multimedia products, as well as a recognized provider of other forms
of premium digital content, including music. The company
was founded in 1995 and provides stock images, music, video
and other digital content through gettyimages.com and iStockphoto.com.
In 2012, The Carlyle Group completed the acquisition of a controlling
indirect interest in Getty Images in a transaction valued at approximately
$3.3 billion. The Carlyle Group owns approximately
51% of the company with a trust representing certain Getty family
members owning approximately 49%. Revenue totaled $827
million for the 12 months ended June 30, 2015.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moodys
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support providers credit rating. For provisional ratings,
this announcement provides certain regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this rating action, and
whose ratings may change as a result of this rating action, the
associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.

Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moodys legal entity that has issued
the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.

Carl Salas
VP – Senior Credit Officer
Corporate Finance Group
Moodys Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
USA.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

John Diaz
MD – Corporate Finance
Corporate Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moodys Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
USA.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moodys downgrades Gettys CFR to Caa1 reflecting additional delay for improved credit metrics; proposed note exchange will result in a limited default

Starting from zero: A simple way to establish credit

by Shelton on November 17th, 2015

filed under Secured Credit

Those who have bad credit — or no credit — may be paying a high price for borrowing: high-interest rates on credit lines, rejection on new loans and maybe even trouble securing an apartment lease.

The simple answer is to establish a good credit score, but accomplishing that is often not so simple. A secured credit card can help.

What makes a secured credit card different from traditional credit cards? Its a credit card where people are securing their credit lines with collateral, in which case it would be a cash deposit, said Barbara ONeill, personal finance professor at Rutgers Cooperative Extension. Basically, you are funding your own credit line.

Secured cards are particularly well suited for those with bad credit or no credit history — people who are starting from scratch or starting over. Its also an alternative for those without another adult to act as a co-signer on a new card.

The credit line on a secured credit card is usually for the same amount of your deposit, though it can be higher. For example, if you give the lender a $300 deposit, you will get a $300 credit line. If you default, the lender keeps your deposit. Otherwise, your deposit gets returned when you close the card.

Read More4 ways to improve your credit score

The deposit reduces the lenders risk, ONeill said.

Its similar to using a prepaid card or debit card in some ways, but there is an important difference. With a secured credit card, your credit behavior will be reported to the three main credit bureaus: Experian, Equifax and TransUnion.

If youre interested in building your credit, you need to prove your credit worthiness, said Sean McQuay, a credit card associate at NerdWallet. A secured credit card is a simple way to do that, he added.

Moody’s Reviews Lannett’s Ratings for Downgrade; Liquidity rating lowered to SGL-2

by Shelton on November 17th, 2015

filed under Secured Credit

Approximately $1.3 billion of rated debt affected

New York, November 05, 2015 — Moodys Investors Service placed the ratings of Lannett Company,
Inc. under review for downgrade, including the B1 Corporate
Family Rating, the B1-PD Probability of Default Rating,
and the B1 rating on the senior secured credit facility. At the
same time, Moodys lowered the Speculative Grade Liquidity
(SGL) Rating to SGL-2 from SGL-1. Moodys had
assigned first time ratings to Lannett on October 13, 2015 in connection
with its pending acquisition of Kremers Urban.

The ratings actions are prompted by Lannetts disclosure that a
key customer of Kremers Urban will be transitioning certain product lines
away from it. Revenues and EBITDA generated from sales of these
products to the customer were material, at $87 million and
$45 million, respectively, for the 12 months ended
June 30, 2015. Reduced cash flow expectations stemming from
the loss of the Kremers Urban customer will reduce the companys
liquidity and ability to absorb potential operating setbacks in the future.

The rating review will focus on the impact to Lannetts cash flow
and leverage stemming from the customer loss. The review will also
consider Lannetts ability to mitigate the loss through cost saving
or other initiatives, as well as through the deferral of capital
expenditures, if needed. Further, the review will incorporate
any impact to liquidity and changes to instrument ratings or loss given
default (LGD) expectations stemming from potential changes to the proposed
capital structure.

Ratings Placed Under Review for Downgrade:

Corporate Family Rating at B1

Probability of Default Rating at B1-PD

Senior Secured Revolving Credit Facility at B1 (LGD 4)

Senior Secured Term Loan at B1 (LGD 4)

Ratings Lowered:

Speculative Grade Liquidity Rating to SGL-2 from SGL-1

RATINGS RATIONALE

The existing B1 Corporate Family Rating (currently under review for downgrade)
reflects Lannetts modest size — despite materially increasing
its revenue with the KU acquisition — in the rapidly consolidating
generic drug industry. The rating is also constrained by Lannetts
rapid growth over the past several years which has been driven largely
by opportunistic price increases. Moodys believes that,
given significant recent scrutiny on generic drug prices, these
types of price increases will be harder to achieve going forward.
In addition, large price increases on generic products tend to draw
more competitors into a market, potentially making Lannetts very
high profit margins unsustainable. The rating also reflects the
companys revenue concentration in a relatively limited number of drugs
and its reliance on third party manufacturers. The rating also
reflects Lannetts limited experience in acquiring and integrating companies
of significant size.

The ratings are supported by Lannetts expected moderate leverage.
The B1 rating incorporates Moodys expectation that adjusted debt to EBITDA
will generally be maintained below 4.0x even if Lannett faces margin
pressure resulting from increased competition on key products.
The ratings also incorporate Moodys expectation that the company will
generate consistently positive free cash flow. Excluding some temporary
expansion capital expenditures in 2016-2017, Moodys anticipates
free cash flow/debt of greater than 5%. The rating is also
supported by Moodys view that the company will use free cash flow to
repay debt and will not pursue other large acquisitions in the next 12-18
months, although some smaller (lt;$200 million) deals are
likely.

The principal methodology used in these ratings was Global Pharmaceutical
Industry published in December 2012. Please see the Credit Policy
page on www.moodys.com for a copy of this methodology.

Lannett Company Inc (Lannett), headquartered in Philadelphia,
PA is a generic drug manufacturer and distributor with capabilities in
opioids and other difficult-to-manufacture products.
Lannett is publicly traded on the NYSE and reported revenues of $407
million for the twelve months ended June 30, 2015.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moodys
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support providers credit rating. For provisional ratings,
this announcement provides certain regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this rating action, and
whose ratings may change as a result of this rating action, the
associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.

Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moodys legal entity that has issued
the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.

Jessica Gladstone
Senior Vice President
Corporate Finance Group
Moodys Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
USA.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Peter H. Abdill, CFA
MD – Corporate Finance
Corporate Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moodys Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
USA.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moodys Reviews Lannetts Ratings for Downgrade; Liquidity rating lowered to SGL-2

Citi Secured MasterCard: Build Credit for Tomorrow

by Shelton on November 13th, 2015

filed under Secured Credit

If you’re new to building credit, you may find it difficult to get the credit card you want. The Citi Secured MasterCard is designed to help you establish a good credit history so you can transition to a better credit card. But how does it stack up against other secured credit cards? Let’s find out.

Citi Secured MasterCard: Benefits and basics

As far as secured cards go, the Citi Secured MasterCard is as straightforward as it gets. If you’re approved, you must deposit between $200 and $5,000 to secure your line of credit in case you default. Your credit limit will equal your deposit.

If you pay off the balance in full every month, over time, your credit score will improve enough to for you to apply for an unsecured credit card. Here are some more details:

Alcon Entertainment, Warner Bros. Extend Deal To 2019, Arranges $200M In New …

by Shelton on November 12th, 2015

filed under Secured Credit

BREAKING: Alcon Entertainment, the financing and production company behind the upcoming Point Break, and titles Dolphin Tale and The 33, is extending its long-standing output deal with Warner Bros. through 2019. Alcon has also arranged for a $200 million senior secured credit facility via finance transaction involving a bank syndicate led by JP Morgan Chase, CIT Bank and Bank of America. Under terms of the new deal, the studio will release a minimum of 10 new films starting with the Nov. 13th release of the Chilean miner movie The 33, which has already bowed internationally in certain markets. That will be followed by Point Break on Christmas Day.

Alcon and Warner Bros. Extend Distribution Deal

by Shelton on November 9th, 2015

filed under Secured Credit

Alcon Entertainment and Warner Bros. are extending their long-standing distribution deal through 2019

Los Angeles based financing and production company Alcon Entertainment is extending its long-standing output distribution agreement with Warner Bros. through 2019. The company has concurrently arranged a $200 million senior secured credit facility via a structured finance transaction involving a bank syndicate led by JP Morgan Chase, CIT Bank and Bank of America, it was announced by Alcon co-founders and CEO’s Andrew Kosove and Broderick Johnson.

Alcon is a wholly independent, multi-media company with its core business in film finance and production. Its films have generated approximately $2 billion in worldwide theatrical box-office. Alcon also has additional entertainment divisions, in television, music and literary management, all sharing with the film unit the common goal to create and own content.

Alcon’s distribution partnership with Warner Bros. was initiated in 1998, the year after Alcon was founded, and remains one of the industry’s most enduring arrangements between an independent company and a major studio.

The new pact marks the fifth time in the past 17 years the two companies have extended the agreement. Starting this Fall with the release of The 33, Warner Bros. will release a minimum of 10 new films from Alcon Entertainment. Alcon has the option to distribute its pictures internationally through Warner Bros., but also has the flexibility instead to presell rights through its long-standing partner Lionsgate International.

The distribution extension and new financing will assist Alcon in maximizing liquidity, say Johnson and Kosove, and allow us to maintain our focus on producing and marketing our films. We value tremendously our close, ongoing relationship with Warner Bros., and we’re thrilled that it will continue.

Andrew, Broderick and Alcon have been great partners to Warner Bros. for the last 15 years, adds Kevin Tsujihara, Chairman and CEO, Warner Bros. Their films are always great additions to our slate, and I’m very glad they’ll continue to be a part of the Warner Bros. family for years to come.

Alcon’s relationships with JPM Chase and Bank of America dates back to 2001when Alcon initiated its borrowing base facility. The companies continued their affiliations and significantly increased their business together 2008 with their first structured financing deal in 2008, where CIT Bank became a co-lead.

The relationship with our core lenders have been vital to the Company’s success, says Alcon’s COO Scott Parish. Our bank partners have supported Alcon in all phases of our history. They are creative business people in the best sense, and in our experience the best, bar none.

Alcon’s next release, The 33, is a firsthand account of the incredible true story of the 33 survivors who lived through the 2010 Chilean mine collapse. The film, starring Antonio Banderas and Juliette Binoche, will be released wide via Warner Bros. on November 13th.

The release of The 33 will be followed on Christmas day with a wide opening of Point Break, a reimagining of the classic action movie that filmed on four continents, starring Edgar Ramirez, Luke Bracey and Ray Winstone. Alcon is currently in principle photography on the road trip comedy Bastards, starring Owen Wilson and Ed Helms, and is in pre-production on a sequel to Blade Runner, with Ryan Gosling in negotiations to star with Harrison Ford. Denis Villeneuve is directing, Ridley Scott is Executive Producing.

Moody’s rates PrimeLine new senior secured credit facilities B3, affirms B3 CFR

by Shelton on November 7th, 2015

filed under Secured Credit

Approximately $330 million of debt affected

New York, October 28, 2015 — Moodys Investors Service (Moodys) assigned a B3 rating to the proposed
senior secured credit facilities of PrimeLine Utility Services LLC (PrimeLine)
and affirmed PrimeLines B3 Corporate Family and Caa1-PD
Probability of Default ratings. The rating outlook is stable.
The new senior secured credit facilities will include a $60 million
senior secured revolving credit facility and a $270 million senior
secured first lien term loan B. The proceeds will be used to refinance
the current revolving credit facility which expires in October 2018 and
first lien term loan which expires in October 2019, as well as to
pay associated transaction fees and expenses.

Moodys took the following actions:

Assigned $60 million senior secured Revolving Credit Facility due
2020, B3 (LGD 3)

Assigned $270 million senior secured Term Loan B due 2022,
B3 (LGD 3)

Affirmed Corporate Family Rating B3

Affirmed Probability of Default Rating Caa1-PD;

Outlook, Stable

RATINGS RATIONALE

The B3 corporate family rating reflects PrimeLines small scale,
volatile margins, high customer concentration, and lack of
geographic and end-market diversification. The company is
primarily focused on providing installation, repair and maintenance
services to electric utilities, but has some exposure to gas distribution,
telecom and design and engineering. PrimeLines margins have been
volatile historically and dependent on the mix of business, the
magnitude of higher margin storm restoration related revenues and,
in some cases, acquisitions. In addition, its operations
are concentrated in the Mid-Atlantic and Northeastern US with some
exposure to the Midwest US. The company has little exposure to
other end-markets and geographic regions.

PrimeLines ratings are supported by the recurring nature of the repair
and maintenance services it provides, its above average industry
margins as well as its ability to provide a full range of services including
design and engineering, storm restoration services and the installation,
maintenance and repair of transmission, substation and distribution
infrastructure to utility customers. The rating also benefits from
favorable industry dynamics due to the aging of power lines and other
infrastructure, and the trend towards outsourcing of maintenance
work by utilities.

The stable outlook presumes the companys operating results will modestly
improve over the next 12 to 18 months and result in gradually improved
credit metrics. It also assumes the company will carefully balance
its leverage with its growth strategy.

The ratings could experience upward pressure if the company increases
its scale and geographic diversification while maintaining its strong
margins, generates positive free cash flow and reduces its leverage
ratio below 4.0x.

Negative rating pressure could develop if deteriorating operating results,
significant debt financed acquisitions or shareholder dividends result
in funds from operations (CF from operations before working capital changes)
declining below 10% of outstanding debt or the leverage ratio rising
above 6.0x. A significant reduction in borrowing availability
or liquidity could also result in a downgrade.

The principal methodology used in these ratings was Construction Industry
published in November 2014. Please see the Credit Policy page on
www.moodys.com for a copy of this methodology.

Headquartered in Seattle, Washington, PrimeLine is a domestically
focused provider of design and engineering services, storm restoration
services and the installation, maintenance and repair of transmission,
substation and distribution infrastructure to electric utilities.
The company generated revenue of approximately $346M for the trailing
12-month period ended June 30, 2015. First Reserve
is the sponsor of Utility Services Associates.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moodys
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support providers credit rating. For provisional ratings,
this announcement provides certain regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this rating action, and
whose ratings may change as a result of this rating action, the
associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.

Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moodys legal entity that has issued
the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.

Edward Schmidt
Vice President – Senior Analyst
Corporate Finance Group
Moodys Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
USA.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Brian Oak
MD – Corporate Finance
Corporate Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moodys Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
USA.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moodys rates PrimeLine new senior secured credit facilities B3, affirms B3 CFR

Amedisys Strong on Segment Sales, Competition Persists

by Shelton on October 22nd, 2015

filed under Secured Credit

On Sep 29, 2015, we issued an updated research report on Amedisys Inc. (AMED – Analyst Report), a provider of home health and hospice services across the US

Amedysis delivered an impressive financial performance in the second quarter of 2015, beating the Zacks Consensus Estimate on both the revenue and earnings front. Moreover, the company witnessed positive revenue growth in both its Home Health and Hospice divisions.

In Home Health, Amedisys continued to generate strong organic growth in Medicare and non-Medicare revenues, while in Hospice, it successfully posted the strongest quarterly same-store revenue growth numbers in nearly three years.

Further, the home health industry is poised for tremendous growth in the long term, driven by the aging US population, patients desire for independence, and home health as a cheaper care modality. Amedisys is expected to consistently benefit from the aging demographics of the US population and the need for higher acuity patients to be taken care of in a home nursing environment.

We are also upbeat about the companys initiative to drive organic growth as well as its search for strategically fit merger and acquisition activities. Notably, the company is developing and acquiring new business lines that will complement its existing home care and hospice business and help seniors manage their health more effectively and stay in their homes longer. It is also working to develop or acquire new business lines that are focused on managing patients age-related disease processes from their onset till the end of life.

On Aug 28, 2015, the company entered into a new $300 million secured credit facility. We believe this will enable Amedisys to invest more in its business and thereby drive more efficiency in operations and increase production.

On the flip side, the market for home health and hospice being fragmented with a number of small local providers and few barriers to entry, Amedisys primarily faces tough competition from local privately and publicly-owned and hospital-owned health care providers. Also, reimbursement rate cuts arising out of Medicare reforms pose challenges to the stock.

Currently, Amedisys carries a Zacks Rank #3 (Hold).

Key Picks in the Sector

Some better-ranked med-outpatient/home care stocks are AmSurg Corp. (AMSG – Analyst Report), Foundation Healthcare, Inc. (FDNH – Snapshot Report) and LHC Group, Inc. (LHCG – Snapshot Report). All the three stocks carry a Zacks Rank #1 (Strong Buy).

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Moody’s rates Tempur Sealy’s notes B1 and upgrades secured credit facility to Ba1

by Shelton on October 17th, 2015

filed under Secured Credit

New York, September 21, 2015 — Moodys Investors Service rated Tempur Sealy International, Inc.s
(Tempur or Tempur Sealy) new senior unsecured
notes B1. At the same time, the rating on the existing notes
was upgraded to B1 and the rating on the secured credit facility was upgraded
to Ba1 from Ba2. These upgrades reflect the change in the relative
mix in the companys capital structure and increased loss absorption
in the event of default. The Ba3 Corporate Family Rating was affirmed.
The rating outlook is stable.

We expect the proceeds of the new notes to be used to repay some
of the secured credit facility, said Kevin Cassidy,
Senior Credit Officer at Moodys Investors Service. This
will not have any impact on leverage, but will eliminate some uncertainty
associated with variable rate debt and will extend the maturity date,
noted Cassidy.

Rating assigned:

Senior Unsecured Notes due 2023 at B1 (LGD 5)

Ratings upgraded:

Senior Secured Term Loan A due 2018 to Ba1 (LGD 2) from Ba2 (LGD 3);

Senior Secured Term Loan B due 2020 to Ba1 (LGD 2) from Ba2 (LGD 3);

Senior Secured Revolving Credit Facility expiring 2018 to Ba1 (LGD 2)
from Ba2 (LGD 3);

Senior Unsecured Notes due 2020 to B1 (LGD 5) from B2 (LGD 5);

Ratings affirmed:

Corporate Family Rating at Ba3;

Probability-of-Default Rating at Ba3-PD;

Speculative Grade Liquidity Rating at SGL-1

RATINGS RATIONALE

Tempur Sealys Ba3 Corporate Family Rating reflects its moderate
leverage, good cash flow generating abilities, sizeable market
share, and solid scale, with revenue of around $3 billion.
The ratings also incorporate the volatility in profitability and cash
flows experienced during economic downturns and by the uncertainty in
discretionary consumer spending, especially for middle and low income
consumers. The ratings benefit from Tempurs solid operating
margins with EBIT/revenue around 11% and good interest coverage
over 3 times. Tempur Sealys strong market position,
well-known brand names, improving consumer confidence,
and the mattress industrys historically strong fundamentals,
anchor the rating.

The stable outlook reflects Moodys view that Tempur will continue
to reduce debt with free cash flow and maintain solid credit metrics.

Tempurs ratings could be upgraded if its operating performance
continues to improve and the company maintains its policy of reducing
debt with free cash flow. Key credit metrics necessary for an upgrade
would be debt/EBITDA sustained below 3 times, interest coverage
maintained above 4 times and mid teen EBIT margins.

Ratings could be downgraded if operating performance meaningfully deteriorates
or if leverage significantly increases for any reason. Key credit
metrics that could lead to a downgrade would be debt/EBITDA sustained
above 4.5 times, interest coverage maintained below 2.5
times, or mid-single digit EBIT margins. Large debt
financed shareholder returns could also lead to a downgrade.

Subscribers can find further details in the Tempur Credit Opinion published
on Moodys.com.

The principal methodology used in this rating was Consumer Durables Industry
published in September 2014. Please see the Credit Policy page
on www.moodys.com.

Tempur Sealy International, Inc.s (Tempur
or Tempur Sealy) develops, manufactures, markets
and sells bedding products, which include mattresses, foundations
and adjustable bases, and other products such as pillows and other
accessories. On March 18, 2013, the company completed
the acquisition of Sealy Corporation, which manufactures and markets
a broad range of mattresses and foundations under the Sealyreg;,
Sealy Posturepedicreg;, Stearns amp; Fosterreg; and other brands.
Net revenue for the twelve months ended June 30, 2015 approximated
$3.1 billion.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moodys
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support providers credit rating. For provisional ratings,
this announcement provides certain regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this rating action, and
whose ratings may change as a result of this rating action, the
associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.

Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moodys legal entity that has issued
the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.

Kevin Cassidy
VP – Senior Credit Officer
Corporate Finance Group
Moodys Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
USA.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Peter H. Abdill, CFA
MD – Corporate Finance
Corporate Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moodys Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
USA.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moodys rates Tempur Sealys notes B1 and upgrades secured credit facility to Ba1