Moody’s rates Zest repriced facilities B3

Moody's Investors Service said it assigned B3 ratings to Zest Holdings, LLC's recently repriced senior secured credit facilities.

The repricing will push out both the $268 million term loan maturity and $20 million revolver expiration by three years each. Further, the agency said it expects that the repricing will generate annual interest savings in excess of $1 million for the company.

Given the leverage-neutral nature of the transaction, all other ratings, including the B3 corporate family rating and B3-PD probability of default rating, are unchanged.

The outlook is stable.

Moody’s said the B3 corporate family rating reflects Zest's small size on both an absolute basis and relative to larger competitors, as well as the company's high financial leverage with adjusted debt to EBITDA of approximately 5.3 times as of Dec. 31, 2016.

“In addition, the company's narrow product focus within the dental manufacturing sector is a further constraint on the rating. Zest's rating is supported by favorable market trends within the dental sector, good organic growth and strong EBITDA margins,” the agency said in a news release.

© 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.