Moody's rates STHI, notes B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B2 probability of default rating to STHI Holding Corp., the parent company of Sterigenics Holdings, Inc.

The assignment was made in connection with GTCR's acquisition of the company from current equity sponsors Silverfleet Capital and PPM America, the agency said.

Moody's assigned a B2 (LGD 4, 54%) rating to the proposed $475 million of senior secured notes due 2018 that will be issued in conjunction with new class A and class B equity units to finance the acquisition.

The outlook is stable.

The ratings are supported by Sterigenics' leading position in the contract sterilization market and focus on sterilizing relatively recession resistant medical devices, the agency said.

The ratings are constrained by the significant financial leverage, small absolute size and inherent business risks, Moody's said.

The debt-to-EBITDA ratio was 7.2 times for the 12 months ended Dec. 31.

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