Moody's assigns Doosan Bobcat add-on Ba3

Moody's Investors Service said it assigned a Ba3 rating to the proposed backed senior secured term loan B add-on facility that will be borrowed by Clark Equipment Co. and guaranteed by Doosan Bobcat Inc.

The add-on will be secured by a first lien on substantially all the borrower’s assets, except for those assets secured by the first lien for the asset-based lending facility. The add-on is rated at the same level as Doosan Bobcat's corporate family rating because the company's term loans and notes rank equally with each other and effectively constitute all its debt, which implies limited junior cushions in its liability structure, Moody’s said.

The proceeds from the term loan B add-on will be used to partly fund the KRW 750 billion acquisition of Doosan Corp.'s forklift business.

The outlook remains stable.

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