Moody’s rates StandardAero loan B2, notes Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to VCSA Holding Corp., the acquisition sub formed to effectuate the acquisition by Veritas Capital of DAE Aviation Holdings, Inc., the holding company of the operating business known as StandardAero.

Concurrently, the agency rated the company's proposed $925 million term loan B2 and $485 million senior unsecured notes Caa2.

The ratings outlook is stable.

The company intends to use the proceeds, together with a $150 million ABL facility ($20 million expected to be drawn at transaction close) and a $845 million equity contribution from Veritas Capital and its affiliates, to finance the $2.1 billion acquisition of StandardAero from DAE as well as pay transaction fees and expenses and fund balance sheet cash.

All pre-existing ratings at DAE Aviation, including the B2 corporate family rating, remain under review for downgrade. The review was initiated on May 27 following the acquisition announcement.

Moody's expects to withdraw all ratings at DAE Aviation upon closing of the transaction.

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