Moody's rates Alliance Laundry loan B2

Moody's Investors Service said it assigned a B2 rating to the $230 million incremental first-lien senior secured term loan of Alliance Laundry Systems LLC, proceeds of which (together with $40 million of balance sheet cash) will be used to acquire Primus Laundry Equipment Group.

In the same rating action, the agency affirmed Alliance's corporate family rating at B3, probability of default rating at B3-PD and the Caa2 rating on its $125 million second-lien term loan.

The outlook remains stable.

Moody's said Alliance's liquidity is supported by its $75 million revolving credit facility, which had a zero balance as of Dec. 31 and which Moody's anticipates will be used modestly going forward; its robust cash flow generation; the comfortable cushion projected under the company's bank credit facility; and the $330 million asset-backed securitization facility, up to $3.6 million of which remains available to finance company receivables and up to $29.8 million of which remains available to finance customers' equipment purchases, as of year-end 2013.

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