Moody’s ups I-Logic, rates loans B2

Moody’s Investors Service said it upgraded I-Logic Technologies Bidco Ltd.’s ratings, including its corporate family rating to B2 from B3 and changed the outlook to stable from positive.

Concurrently, Moody’s assigned a B2 rating to each of the proposed $20 million first-lien revolver and U.S. dollar-equivalent $1.85 billion first-lien term loans denominated in dollar and euro tranches.

The proceeds will be used to refinance the combined entity’s capital structure for I-Logic’s combination with Acuris International Ltd. Acuris Finance US, Inc. and Acuris Finance Sarl will be the co-borrowers under the facility.

“The upgrade of the corporate family rating to B2 reflects I-Logic’s significant progress in reducing financial leverage that, along with its improving cash flow and profitability, have strengthened the company’s credit profile. Buoyed by the meaningful progress in cost savings initiatives and organic revenue growth, I-Logic reduced its financial leverage to approximately 4.4x as of LTM 9/2020 from 8.3x at the end of 2017 (both metrics are Moody’s adjusted), providing sufficient financial flexibility on its balance sheet to absorb the Acuris acquisition,” the agency said in a press release.

The stable outlook reflects the expectation I-Logic will de-lever to under 6x (Moody’s adjusted) driven by synergy realization with Acuris and high-single-digit top-line growth over the next 12-18 months, Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.