Moody's rates Spectaguard facility B2

Moody's Investors Service said it has assigned a B2 rating to Spectaguard Acquisition LLC's $45 million senior secured term loan that will be an add-on to the existing $92.4 million senior secured term loan.

Moody's said the ratings reflect the company's high leverage, acquisition appetite, minimal tangible assets, and the competitive nature of the company's business.

The ratings also reflect the company's impressive market position as one of the largest security service companies in the USA. The company's operations have experienced low cyclicality during the economic downturn and have continued to perform well.

Proceeds from the proposed additional $45 million term loan, along with $15 million of incremental subordinated notes and $12 million in proceeds from equity of Mafco and its affiliates, will be used to fund acquisitions and for related fees and expenses.

Additionally, in conjunction with the add-on, the company has increased its revolving credit facility commitment by $10 million resulting in total commitments of $30 million to finance general corporate purposes.

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