Moody's gives Energize loans B2, Caa2

Moody's Investors Service said it gave Energize Holdco LLC (TRC Cos.) a corporate family rating at B3, probability of default at B3-PD, a B2 rating to the planned senior secured first-lien credit facility consisting of a $115 million revolver due 2026, a $635 million term loan and a $95 million delay-draw term loan both due 2028, and a Caa2 rating to the proposed senior secured second-lien credit facility consisting of a $210 million second-lien term loan and $30 million delayed-draw term loan both due 2029.

"TRC's highly levered capital structure following a sponsor-to-sponsor sale is a key consideration in the B3 corporate family rating," said Andrew MacDonald, Moody's lead analyst for the company, in a press release. "The company has diverse service offerings, and we believe that good demand for transmission and distribution infrastructure spending in the U.S. will be the key driver of revenue growth near term, which in turn should lead to de-leveraging absent future acquisitions or shareholder dividends."

Term loan proceeds and equity from Warburg Pincus LLC will be used to purchase the company, fund $10 million of initial balance sheet cash at closing, prefund two tuck-in acquisitions and pay transaction-related fees and expenses.

The outlook is stable.

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