Moody’s assigns New Trojan B2

Moody’s Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to New Trojan Parent, Inc. the acquirer of Strategic Partners Acquisition Corp., an indirect parent company of branded medical apparel company Careismatic, Inc.

Moody’s also assigned a B1 to New Trojan Parent’s senior secured first-lien credit facilities, consisting of a $100 million revolver expiring in 2026 and a $575 million senior secured term loan due 2028, and a Caa1 rating to its $140 million senior secured second lien credit facility due 2029.

“The ratings reflect the stable and growing demand for medical uniforms, which has recently accelerated due to global coronavirus pandemic, the low fashion risk and replenishment nature of the product, and high operating margins,” stated Mike Zuccaro, a Moody’s senior analyst, in a press release. “However, the ratings are constrained by the company’s high pro forma leverage of over 6.75 times for the LTM period ending September, modest scale, and narrow product focus.”

Proceeds, along with new common equity and management equity rollover equity, were used to fund the acquisition of SPAC by private equity firm Partners Group. All ratings on the current Strategic Partners are unaffected by these actions, and will be withdrawn upon full repayment of the debt obligations.

The outlook is stable.

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