Moody’s gives ABB/Con-Cise loans B1, Caa2

Moody's Investors Service said it assigned a B1 (LGD 2) rating to ABB/Con-Cise Optical Group LLC's proposed first-lien senior secured credit facilities, including a $100 million senior secured revolver and a $350 million senior secured term loan.

The agency also assigned a Caa2 (LGD 4) rating to the company's proposed $160 million second-lien senior secured term loan.

Proceeds will be used to refinance the company's existing debt, pay a dividend to majority shareholder New Mountain Capital LLC and pay transaction fees and expenses.

At the same time, Moody's affirmed ABB/Con-Cise’s existing ratings, including its B3 corporate family rating and B3-PD probability of default rating.

The ratings on the company's existing debt will be withdrawn at the close of the transaction.

The outlook is stable.

Moody’s said the affirmation of the corporate family rating reflects ABB/Con-Cise’s leading scale and market position among U.S. distributors of soft contact lenses and the expectation that the company will delever through earnings growth and debt pay down.

That said, the agency recognizes the company's aggressive shareholder friendly financial policy that has produced a significant increase in financial leverage to 6.9 times from 4.1 times pro-forma for the payment of a dividend to ABB/Con-Cise’s majority shareholder.

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