Moody's gives NorthStar, loan B2

Moody's Investors Service said it assigned first-time ratings to NorthStar Group Services, Inc., including a B2 corporate family rating, a B2-PD probability of default rating and a B2 rating on its proposed senior secured term loan. Waste Control Specialists, LLC will be a co-borrower on the new loan.

The assignments follow NorthStar’s plan to issue a $555 million term loan due 2027. The proceeds will be used to refinance debt and help pay a dividend to NorthStar’s private equity owner, J.F. Lehman & Co.

“Moody's views the sizeable $322 million dividend to Jflco, the third distribution within the last 12 months, as aggressive and reflective of elevated governance risk, making it likely that financial leverage will be elevated going forward, which is incorporated in the ratings,” the agency said in a press release.

The outlook is stable. The outlook reflects the expectation of solid organic revenue growth and greater free cash flow from the contracted book of business, and the company's good position to capitalize on potential upcoming nuclear power plant deconstruction and decommissioning projects and future large projects in its commercial/industrial deconstruction business, Moody’s said.

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