Moody's rates Alliant B3

Moody's Investors Service said it assigned a B3 corporate family rating to Alliant Holdings I, Inc., an indirect holding company for ARG Holdings, Inc., which owns Alliant Insurance Services, Inc.

The proposed financing arrangement for the proposed acquisition of Alliant by the Blackstone Group includes a $60 million senior secured revolver rated B2, a $360 million senior secured term loan rated B2 and $290 million of senior unsecured notes rated Caa1.

The outlook is stable.

Proceeds will be used to help fund the acquisition and repay existing debt of about $350 million.

The ratings reflect Alliant's position as a leading specialty broker and program manager, strong organic growth and operating margins, and successfully integrated acquisitions, Moody's said.

The ratings are constrained by significant financial leverage and modest interest coverage following the acquisition, with the adjusted debt-to-EBITDA ratio expected to be nearly 7 times, the agency said. Alliant, like other brokers, also faces generally softening rates in the property and casualty insurance market.

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