Moody's eyes Terminix for upgrade

Moody's Investors Service said it placed the Terminix Co., LLC's (together with publicly traded Terminix Global Holdings Inc.) Ba2 corporate family rating, Ba2-PD probability of default rating and Ba1 senior secured rating on review for upgrade.

The B1 ratings assigned to the senior unsecured legacy notes issued by Terminix's indirect subsidiaries The ServiceMaster Co. (Old) and the ServiceMaster Co. LP were also placed on review for upgrade. The outlook was revised to rating under review from stable.

On Tuesday, unrated Rentokil Initial plc agreed to purchase Terminix in a cash-and-stock transaction.

“The rating review reflects Moody's anticipation that, following the close of the acquisition by Rentokil, Terminix's rated debt could remain an obligation of Rentokil with or without the explicit support of Rentokil, be exchanged for Rentokil debt, be repaid or be refinanced. The review will focus on the final debt capital structure once the acquisition is completed and whether any of the rated debt remains outstanding,” the agency said in a press release.

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