Moody’s: Herff Jones on downgrade review

Moody’s Investors Service said it placed under review for possible downgrade Herff Jones, Inc.’s ratings, including its B2 corporate family rating, B3-PD probability of default rating and the B2 ratings on its senior secured term loan due 2019 and revolving credit facility due 2018.

The action follows news that the company entered into a definitive agreement to be acquired by Charlesbank Capital Partners, a private equity firm, and Partners Group, a private markets investment-management firm.

The transaction includes the businesses of Herff Jones, Varsity Spirit and BSN Sports, which generate about $1.2 billion in combined annual revenues.

Moody’s said it expects the acquisition to be financed with new debt.

The review will focus on the likely capital structure following the acquisition financing, the agency said, and the financial policy and strategic objectives of the company’s new private equity owners.

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