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Moody’s rates Sirius Computer loans Ba3, B3
Moody's Investors Service said it assigned a B1 corporate family rating and a B1-PD probability of default rating to Sirius Computer Solutions, Inc. (New).
The agency also assigned a Ba3 rating to the Sirius Computer's proposed $60 million first-lien senior secured revolving credit facility and $445 million first-lien senior secured term loan, and a B3 rating to its proposed $150 million second-lien senior secured term loan.
The outlook is stable.
Proceeds, in addition to $261 million in contributed and rolled over equity, will be used to fund the roughly $830 million acquisition of the company by Kelso & Co. and repay existing debt.
Moody’s said the debt instrument ratings comprise both the overall B1-PD probability of default and an average family loss given default assessment. The Ba3 (LGD3) rating assigned to the first-lien senior secured credit facilities using Moody's Loss Given Default Methodology reflects the facilities' senior position in the capital structure. The second-lien term loan is rated B3 (LGD5).
The agency also noted the fairly high level of payables with the company's key partner Avnet that currently provides junior capital support and these payment terms may be tightened in a financial distress scenario.
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