Moody's affirms Spin’s upsized loan at B2

Moody's Investors Service said it affirmed Spin Holdco, Inc.'s B3 corporate family rating, its B3-PD probability of default rating and the B2 (LGD3) ratings on the proposed $125 million add-on to the company's first-lien term loan, which now amounts to $1.52 billion, and on Spin's $75 million revolving credit facility due 2018. The outlook remains stable.

Spin plans to use the term loan proceeds to term out $49 million of revolver drawings, to prefund pending tuck-in acquisitions and to fund future acquisitions.

Moody's views the modest increase in leverage and cash interest expense as credit negative but affirmed the B3 corporate family rating because projected debt-to-EBITDA of 5.4 times (for the fiscal year ending March 2015, incorporating Moody's standard adjustments) is within the range expected for the rating.

The B3 corporate family rating reflects Spin's track record of acquisitions and aggressive financial policies, the agency said.

At the same time, the rating more favorably reflects Spin's stable revenue stream, Moody’s added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.