Moody’s applies B2, Caa2 to Acrisure loans

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

The agency also assigned B2 ratings to the company’s $75 million first-lien revolving credit facility and $410 million first-lien term loan and a Caa2 rating to its $60 million second-lien term loan.

Proceeds, along with cash on the balance sheet, will be used to refinance existing senior secured credit facilities, to fund acquisitions and to pay fees, expenses and other costs associated with the transaction. The transaction is expected to close in May.

The outlook is stable.

Moody’s said the ratings reflect Acrisure's increasing market position in North American insurance brokerage, good mix of business between P&C insurance and employee benefits, and good EBITDA margins.

These strengths are offset by the company's high financial leverage and low interest coverage associated with its planned 2015 refinancing and its rapid growth through an aggressive acquisition strategy.

The company's revenue has more than tripled since 2013, which gives rise to integration and contingent risks (e.g., exposure to errors and omissions), the agency said.

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