Moody's assigns Dealer Tire notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to Dealer Tire, LLC's proposed $350 million of senior unsecured notes. These unsecured notes along with a $415 million add-on to the existing senior secured term loan and equity will be used to fund the acquisition of Dent Wizard.

Dealer Tire's existing ratings and outlook are unaffected, including the B2 corporate family rating, B1 senior secured rating and negative outlook.

The Caa1 senior unsecured rating is two notches below the B2 CFR reflecting the effective subordination to the secured debt holders who hold a first lien on substantially all assets of Dealer Tire and its domestic subsidiary guarantors, which will include Dent Wizard. The senior unsecured notes are expected to be guaranteed by the same subsidiary guarantees as the secured credit facilities, the agency said.

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