Moody's assigns EWT facility B1

Moody's Investors Service said it assigned a B1 rating to EWT Holdings III Corp.'s (Evoqua) proposed amended and extended bank credit facilities. These planned facilities are a senior secured first-lien $250 million revolving credit facility expiring 2026, and a $560 million term loan due 2028. All other ratings and the stable outlook are unchanged.

Proceeds from the transaction will be used to partially pay down its term loan due 2024. “However, the transaction will be leverage neutral as the company will be repaying the existing term loan with the new debt and a new $150 million multi-year securitization program. The proposed transaction will favorably extend the company's existing debt maturity profile as follows: revolving credit facility to 2026 from 2022 and term loan to 2028 from 2024 and will also reduce the company's interest burden,” Moody’s said in a press release.

The ratings on the existing first-lien bank debt, rated B1, will be withdrawn upon the transaction's close.

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