Moody’s rates EnTrans CFR, notes B2

Moody's Investors Service said it assigned B2 and B2-PD corporate family and probability of default ratings to EnTrans International, LLC.

EnTrans is the combination of Heil Trailer International, Co and Serva Financing LLC.

The agency also assigned a B2/LGD3 rating to EnTrans' proposed $250 million senior secured notes.

Proceeds will be used primarily to refinance all the existing Heil and Serva debt.

The outlook is stable.

Moody’s said the B2 corporate family rating reflects the company's high cyclicality (due to its sale of equipment use in U.S. hydraulic fracturing) and modest revenue scale (about $600 million), particularly the roughly 50% generated from the sale of equipment used in North American hydraulic fracturing industry.

In addition, there is uncertainty of how the relatively new management team will operate the freshly combined Heil and Serva, the agency said.

© 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.