Moody's rates Jason loans B1

Moody's Investors Service said it assigned a B1 corporate family rating and B2-PD probability of default rating to Jason Inc. and B1 (LGD 3, 30%) ratings to its proposed $35 million revolving credit facility due 2018 and $260 million senior secured term loan due 2019. The outlook is stable.

Proceeds from the term loan will be used to repay existing debt and finance a $48 million dividend to the company's sponsor, Saw Mill Capital Partners.

The agency said the B1 rating reflects Jason's moderately high adjusted leverage (4.6 times pro forma at close), exposure to end market cyclicality, regional concentration in North America and adequate liquidity profile.

The rating further reflects the company's solid market position in its diverse, yet niche businesses and cyclical growth prospects over the near term, Moody's said.

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