Moody’s gives Kellermeyer loans B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Kellermeyer Bergensons Services, LLC.

At the same time, the agency assigned a B2 rating to the company's proposed first-lien senior secured credit facilities, including a $148 million term loan due 2021 and a $30 million revolving credit facility due 2019, and a Caa2 rating to proposed $65 million second-lien senior secured term loan due 2022.

The outlook is stable.

GI Partners entered into a definitive agreement to acquire Kellermeyer, currently majority-owned by Kohlberg & Co. The acquisition will be financed with the proceeds from $240 million of first-lien and second-lien senior secured credit facilities and an equity contribution from the sponsor.

The B2 rating on the first-lien senior secured credit facilities reflects their first priority interest in all assets and capital stock of the company and its guarantors. The Caa2 rating on the second lien facilities reflects their junior position in the capital structure, and therefore their loss absorption.

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