Moody’s rates Hoover loan B2

Moody’s Investors Service said it assigned first-time ratings to Hoover Group, Inc., including a B2 corporate family rating and B3-PD probability of default rating.

The agency also assigned a B2 rating to the company’s proposed senior secured first-lien bank debt consisting of a $30 million revolving credit facility due 2020 and a $165 million term loan due 2022.

The company operates its business as Hoover Container Solutions.

The outlook is stable.

The proceeds from the bank debt issuance will be used to partially fund the $330 million acquisition of the company by private equity firm First Reserve, Moody’s said.

The transaction includes an equity component of about $175.6 million with management rolling over about $60 million, the agency said.

The B2 rating on the proposed bank debt, which is in line with the B2 corporate family rating, reflects the preponderance of first-lien secured debt in the company’s debt structure, Moody’s said.

The ratings also consider the company’s small revenue base, moderate leverage for the rating category and acquisitive growth strategy balanced against the company’s geographic diversification and good market position, 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.