Moody's gives Mitchell CFR B3, loans B1 & Caa2

Moody's Investors Service said it assigned new ratings to Mitchell International, Inc., including a B3 corporate family rating, B3-PD probability of default rating, B1 to the proposed $540 million first-lien credit facility and Caa2 to the proposed $245 million second-lien term loan.

Proceeds from the debt, along with about $450 million in equity, will be used to finance the $1.13 billion acquisition of Mitchell by Kohlberg Kravis Roberts & Co.

The outlook is stable.

"The B3 CFR takes into account the releveraging of Mitchell to about 9.0x (including Moody's standard adjustments), after the company had been steadily deleveraging over the past several years, to as low as 4.6x as of June 2013," Moody's senior analyst Kevin Stuebe said in a news release.

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