Moody’s gives Caa1 to Great Lakes note add-on

Moody's Investors Service said it assigned a Caa1 rating to Great Lakes Dredge & Dock Corp.’s proposed $25 million add-on senior unsecured notes due 2019.

The company's B3 corporate family rating, B3-PD probability of default rating, Caa1 rating on the existing $250 million 7 3/8% senior unsecured notes due 2019 and the SGL-3 speculative grade liquidity rating were affirmed.

The outlook remains positive.

Proceeds from the add-on notes will be used to replenish the balance sheet cash that had been applied to partially finance the $50 million acquisition of Magnus Pacific Corp. on Nov. 4. Credit metrics are expected to remain largely unaffected due to the EBITDA contribution from the Magnus acquisition.

The Caa1 rating assigned to the proposed $25 million add-on notes reflects their junior position to the company's $210 million secured revolving credit facility. Moody's expects that the notes will be guaranteed by Great Lakes' existing and any future significant domestic subsidiaries.

© 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.