Moody's rates Generac loan B2

Moody's Investors Service said it assigned a B2 rating to Generac Power Systems, Inc.'s proposed $1.15 billion senior secured term loan, the proceeds of which will support a refinancing of Generac's existing term loan and fund a special dividend of approximately $340 million.

Additionally, Moody's affirmed Generac's corporate family rating at B2, probability of default at B2-PD and speculative grade liquidity at SGL2.

The outlook was revised to stable from positive.

Moody's said the B2 rating on the proposed $1.15 billion senior secured term loan reflects its first priority-lien on fixed assets and intangibles and through cross-collateralization with the new $150 million senior secured ABL (unrated), a second priority-lien on all ABL collateral.

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