Moody's rates Coyote Logistics loan B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Coyote Logistics, LLC and a B2 (LGD3) rating to its $360 million senior secured term loan B. The company's new $100 million asset-backed revolving credit facility is unrated. The outlook is stable.

Term loan proceeds will be used to refinance existing revolver borrowings, add cash to the balance sheet and fund a distribution to the company's financial sponsor, Warburg Pincus, LLC, and to company management.

The agency said the B2 corporate family rating reflects Coyote's modest scale in terms of net revenue, its limited operating history at its current size and a treasury policy that contemplates additional leverage in order to fund distributions.

The B2 rating also considers the company's strong position within the trucking and logistics service provider industry, blue-chip customer base and end-market diversification across a number of sectors characterized by stable demand, Moody’s said.

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