Moody's rates MetoKote loans B2

Moody's Investors Service said it assigned B2 ratings for MetoKote Corp.'s $192 million of newly proposed guaranteed first-lien senior secured credit facilities.

These new credit facilities, together with the net proceeds from a pending $40 million sale/leaseback transaction and about $4 million of balance sheet cash, will be used to refinance about $175 million of existing first- and second-lien debt plus fund an about $26 million shareholder dividend. The outlook remains stable.

To MetoKote's credit, Moody's said the ratings reflect that pro forma and projected EBIT coverage of cash interest is expected to exceed 2.5x, that the company's business model is becoming increasingly well accepted by its potential base of customers and that the pace of organic growth of InSites is escalating.

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