Moody's assigns Vector WP, loans B2

Moody's Investors Service said it assigned first-time ratings to Vector WP Holdco, Inc., including a B2 corporate family rating and a B2-PD probability of default rating. Concurrently, the agency gave a B2 rating to the company's planned $415 million senior secured credit facility, which is comprised of a $100 million revolving credit facility and a $315 million first-lien term loan B.

Term loan proceeds and $230 million of new equity from One Equity Partners will be used to acquire and merge USNR LLC and Wood Fiber Group.

“Moody's estimates the pro forma adjusted debt to EBITDA to be moderately high at 4.8x as of LTM June 2021. The company has a niche market focus on wood processing that largely serves cyclical end markets such as housing and construction industries. A large portion of the combined company's revenue will be generated through equipment sales that are susceptible to volatility in lumber prices,” the agency said in a press release.

The outlook is stable.

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