Moody’s rates Ashtead notes Ba2

Moody's Investors Service said it assigned Ba2 instrument ratings to the new $1.2 billion second priority senior secured notes due 2025 and 2027 to be issued by Ashtead Capital, Inc., a subsidiary of Ashtead Group plc.

Proceeds will be used to: (a) refinance the $900 million second priority senior secured notes due 2022 including a $29 million call premium; (b) repay a portion of the outstanding borrowings under the $3.1 billion first priority senior secured credit facility; and (c) pay transaction fees.

Ashtead's Ba1 corporate family rating and Ba1-PD probability of default rating and the Ba2 instrument rating on the $900 million second priority senior secured notes due 2022 and $500 million second priority senior secured noted due 2024 both issued by Ashtead Capital are unchanged.

The outlook on all ratings remains stable.

Moody's expects to withdraw the Ba2 rating on the $900 million second priority senior secured notes due 2022 at the closing of the refinancing.

Moody’s said the notes due 2025 and 2027, which will rank pari passu with the notes due 2024, are rated Ba2, one notch below the corporate family rating, reflecting the size of the ABL facility ranking ahead.

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