Moody’s rates Acosta loan B1

Moody’s Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Acosta Holdco, Inc., as well as B1 ratings to the company's proposed first-lien senior secured facilities.

According to the agency, the nearly $3 billion of debt proceeds, supplemented by $1.84 billion of cash equity contributed by the Carlyle Group, will be used to effect Carlyle's acquisition of Acosta.

The company intends to issue subordinated debt as well, but Moody's said it has not yet rated these securities.

The outlook is negative.

Upon the acquisition's closing, which is expected late in the third quarter of 2014, Moody's will withdraw existing ratings at Acosta, Inc., the current borrower of roughly $2.2 billion of senior secured and mezzanine debt.

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