Moody’s rates ALG loans B1, Caa1

Moody's Investors Service said it assigned a B1 rating to ALG BV's proposed $50 million first-lien revolving credit facility, a B1 rating to its proposed $330 million first-lien term loan and a Caa1 rating to its proposed $130 million second-lien term loan.

The B2 corporate family and B2-PD probability of default ratings were affirmed.

The outlook remains stable.

Proceeds from the proposed term loans will be used to refinance existing debt and to finance a $250 million dividend to ALG's owners including Bain Capital, which owns about 85% of ALG's ultimate parent company.

Ratings are affirmed following the increase in debt to finance the dividend as Moody's believes ALG's operating performance will remain strong in 2016 supporting debt to EBITDA returning to a mid 5 times range over the next 12 to 18 months.

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