Moody's affirms Neovia

Moody's Investors Service said it affirmed Neovia Logistics Intermediate Holdings, LLC’s corporate family rating at B3, probability of default rating at B3-PD and $125 million senior PIK bonds due 2018 at Caa2 (LGD6) and Neovia Logistics Services, LLC’s $450 million senior secured bonds due 2020 at B2 (LGD3). The outlook is stable.

The affirmation follows the beginning of consent solicitations in connection with the sale of Neovia to an affiliate of Goldman Sachs & Co. and Rhone Capital LLC. The agency said it affirmed the ratings because there will be no material change to the company's capital structure assuming it successfully obtains the requisite consents from current noteholders in relation to the change-of-control provisions of the senior secured notes and the PIK notes.

In Moody’s view, Neovia’s B3 corporate family rating reflects the company's substantial amount of debt and the adverse effect on profits of continuing carve-out expenses, balanced by the relatively high margins of its spare parts logistics business.

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