Moody's gives SRAM facility B1

Moody's Investors Service said it gave B1 ratings to SRAM LLC's new $100 million senior secured five-year revolving credit facility and new $1.1 billion senior secured term loan B due 2028. Moody's took no action on the B1 ratings on SRAM’s $40 revolver expiring in 2022 and term loan due in 2024 as these facilities will be repaid and Moody's expects to withdraw the ratings upon close.

The agency also affirmed SRAM’s B1 corporate family rating and B1-PD probability of default rating.

Proceeds will be used to refinance debt and fund a special dividend. “The transaction is an aggressive use of debt to fund a sizable $750 million distribution and will increase pro forma debt to EBITDA to approximately 5.1x times from 1.9x as of Dec. 31, 2020,” the agency said in a press release.

The outlook is stable.

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