Moody's rates Harvey Gulf term loan B1

Moody's Investors Service said it assigned a first-time corporate family rating of B1 to HGIM Corp. (Harvey) and a B1 rating to the company's proposed credit facility consisting of $250 million revolver and $750 million term loan B.

Proceeds from the financing transaction will be used to refinance $534 million of existing debt, acquire nine offshore supply vessels and fast service vessels from Gulf Offshore Logistics, LLC for $189 million, adjust for acquisition related excess working capital, and pay related fees and expenses.

The outlook is stable.

The B1 corporate family rating reflects Harvey's modest size; primary geographic concentration in the Gulf of Mexico; relatively short track record as a company with sizable assets and fleet size; customer concentration; exposure to crude oil and natural gas price cycles; and low likelihood of debt reduction over the next 12-18 months, Moody's said.

At the same time, the B1 rating also recognizes Harvey's significant position as a provider of Jones Act OSV and ocean towing vessel (OTV) services in the Gulf of Mexico; existing long-term charters for most of its fleet; high-quality fleet of vessels; good EBITDA margins; and deepwater focus.

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