Moody's rates Southwire loan Ba3

Moody's Investors Service said it assigned a Ba2 corporate family rating and Ba2-PD probability of default rating to Southwire Co.

At the same time, the agency assigned a Ba3 rating to the company's proposed $750 million senior secured term loan.

The outlook is stable.

On Dec. 20, Southwire announced that it had entered into a definitive agreement to acquire Coleman Cable, Inc. for about $786 million. Southwire will use proceeds from the proposed $750 million senior secured term loan, about $278 million of borrowings under its proposed $1 billion senior secured asset-based revolving credit facility (unrated) and roughly $90 million of balance sheet cash to fund the Coleman acquisition and repay existing indebtedness at Southwire and Coleman.

Moody's will withdraw the existing ratings for Coleman at the close of the proposed transaction.

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