Moody’s assigns Alliance Laundry, facility B2

Moody’s Investor Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Alliance Laundry Systems LLC and a B2 rating to the company’s proposed first-lien senior secured bank credit facility.

The credit facility, consisting of a $1.25 billion first-lien term loan and $125 million revolver will be used to fund the refinancing of debt and fund a distribution to repurchase a portion of preferred equity owned by control shareholder, BDT Capital Partners.

“The assignment of the B2 corporate family rating reflects the company’s high leverage following the transaction. Moody’s estimates leverage will be approximately 7.2x by the end of 2020. However, Moody’s expects credit metrics will improve as the company grows and realizes benefits from cost reduction initiatives,” Moody’s said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.