Moody’s rates Daseke CFR, loan B1

Moody's Investors Service said it assigned a B1 corporate family rating and a B1-PD probability of default rating to Daseke, Inc., an open deck transportation company that entered into an agreement to merge with Hennessy Capital Acquisition Corp. II (HCAC).

Concurrently, the agency assigned a B1 rating to the company's proposed $350 million senior secured term loan that it plans to arrange to help fund repayments of existing debt and additional acquisitions.

The outlook is stable.

Moody’s said the B1 corporate family rating considers Daseke’s position as a leading provider of open deck transportation and logistics services, the well-established operational track record of Daseke's group companies and the agency’s expectation of positive, yet modest, free cash flow and moderate financial leverage.

At the same time, the rating takes into account Daseke's thin operating margins and the company's exposure to end-markets that are correlated with cyclical industrial production and construction spending in North America, Moody’s added.

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