Moody's rates Kronos loans Ba3, Caa1

Moody's Investors Service said it assigned a B2 corporate family rating to Kronos, Inc., Ba3 (LGD3, 30%) ratings to its $60 million revolving credit facility due 2013 and $665 million first-lien term loan due 2014 and a Caa1 (LGD5, 84%) to its $390 million second-lien term loan due 2015.

The outlook is stable.

On March 23, Kronos signed a definitive agreement to be acquired by private equity firm Hellman & Friedman Capital Partners VI, LP in a transaction valued at $1.8 billion, of which $720 million of common equity will be funded by the equity sponsor. The transaction remains subject to shareholder approval and is expected to close in the third quarter.

The agency said Kronos' B2 rating balances the company's leadership position in the workforce management software market and client diversity against its modest pretax income, low asset returns and high financial leverage.

© 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.