Moody's rates MRO loans

Moody's Investors Service said it assigned a B1 rating to the proposed senior secured first-lien credit facilities and a B2 rating to the proposed second-lien credit facility of MRO Acquisition Corp., a wholly owned subsidiary of Piedmont Hawthorne Holdings Inc.

Proceeds from the proposed offering will be used to fund the recapitalization of Piedmont whereby Carlyle Partners III will purchase 100% of the Piedmont common stock held by Carlyle Partners II for $182.5 million and to repay existing Piedmont credit facilities and to finance the acquisition of Garrett Aviation Services from GE Engine Services for a purchase price of $159 million.

More specifically, Moody's assigned a B1 rating to the company's proposed $207 million senior secured first-lien credit facilities, B2 to the company's proposed $80 million senior secured second-lien term loan due 2011, a B1 senior implied rating and a B3 issuer rating.

The outlook is stable.

Moody's said the ratings reflect the leading market positions that the new company will have in several segments of the aircraft services market as a provider of fixed-based operations, maintenance repair and overhaul services, aircraft interior completions and modifications and aircraft sales and trading.

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