Moody’s gives Ashtead notes Baa3

Moody’s Investors Service said it assigned a Baa3 rating to Ashtead Capital, Inc.’s proposed $1 billion second-priority senior secured notes due 2028 and 2029.

Proceeds will be used to tender its $500 million senior secured notes due 2024 and to repay some of borrowings under the $4.1 billion ABL facility.

Ashtead Group plc’s Baa3 issuer rating and Baa3 rating on existing notes remain unchanged.

“Ashtead now carries an investment grade rating from at least two rating agencies. Therefore, in accordance with the terms of the indenture governing the proposed notes and the indentures governing the 2025, 2026 and 2027 notes ("the existing notes"), Moody’s expects the full repurchase or redemption of the 2024 notes to trigger the release of collateral securing the remaining notes. Therefore, going forward the proposed notes along with the existing notes will rank pari passu in right of payment on an unsecured basis, supported by subsidiary guarantees,” said Moody’s in a press release.

The outlook is stable.

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