Moody's rates AmerCable loans Ba2, B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B3 probability-of-default rating to AmerCable Inc., a Ba2 (LGD1, 1%) rating to its $15 million senior secured revolver due 2012 and a B2 (LGD3, 38%) rating to its $135 million senior secured term loan due 2014.

The outlook is stable.

Proceeds from the new loans will be used to purchase the company's equity, to repay existing senior bank debt and to pay transaction fees and expenses. AmerCable is being acquired by Quintana Energy Partners LP for $212 million.

The B2 corporate family rating reflects the company's moderate leverage, modest free cash flow and its small size relative to its primary competitors, Moody's said.

Factors that serve to mitigate these risks include the company's leading share positions in its core North American markets, the favorable demand fundamentals in the oil and gas sector and the mining sector for the foreseeable future, the quality and diversification of its customer base, its seasoned management team and its superior margins, the agency added.

© 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.