Moody’s rates Liquid Tech, loans B3

Moody’s Investors Service said it assigned first-time ratings to Liquid Tech Solutions Holdings, LLC, including a B3 corporate family rating, a B3 to the $50 million revolving credit facility and $300 million senior secured first-lien term loan and a B3-PD probability of default rating. The outlook is stable.

“The ratings reflect Liquid Tech Solutions’ relatively small scale with net revenue of less than $200 million, elevated financial leverage, and what Moody’s anticipates will be an aggressive acquisition strategy. Moody’s expects financial leverage of about 6x debt-to-EBITDA, pro forma for its new capital structure for the fiscal year-ended Dec. 31, 2020 (on a Moody’s Adjusted basis),” the agency said in a press release.

Term loan proceeds will be used primarily to repay debt, provide cash to the balance sheet, and cover transaction fees and expenses.

“The stable outlook balances Moody’s expectations of continued earnings improvement, aided by cost measures implemented during 2020 and contributions from acquisitions, against a slow recovery in the company’s business environment,” the agency said.

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