Moody’s rates SRAM facilities B2

Moody's Investors Service said it assigned B2 ratings to SRAM Corp.’s $570 million first-lien term loan and $40 million first-lien revolving credit facility.

The revolver expires in 2022 and the term loan matures in 2024.

Net proceeds from the new term loan will be used to repay the existing $570 million term loan.

The rating on the existing term loan and revolver will be withdrawn at the closing of this offering.

The company's B2 corporate family rating and stable outlook are unchanged.

Moody’s said the B2 rating on the $40 million revolver and $570 million term loan, which is the same as the corporate family rating, reflects the preponderance of debt in the capital structure. Both the term loan and revolver are secured by a first priority lien on all of SRAM's assets.

An insignificant amount of obligations are junior to the secured term loan and revolver, the agency added.

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