Moody’s gives Academi loans B3

Moody's Investors Service said it assigned initial ratings to Academi Holdings, LLC, including a B3 corporate family rating and B3 ratings to its $150 million first-lien revolver due 2019 and $290 million first-lien revolver due 2019.

The outlook is stable.

Proceeds from the planned facility will refinance existing debt and fully fund the company's pending acquisition of Constellis Group, Inc.

Moody’s said the B3 corporate family rating balances moderate financial leverage, pro forma for the debt raise and acquisition, with contract concentration, integration risk and a recent history of operating margin volatility.

On a Moody's adjusted basis, beginning debt-to-EBITDA, pro forma for the transaction, will be about 4.5 times. This leverage level is rather low for the assigned rating and partially offsets high revenue dependence on the Worldwide Protective Services contract, a $10 billion indefinite delivery indefinite quantity vehicle under which the U.S. Department of State procures protective services globally.

© 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.