Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers C > Headlines for Corporate Risk Holdings LLC > News item |
Moody’s rates Genuine Financial, facilities
Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Genuine Financial Holdings, LLC (Genuine Information Solutions LLC) in connection with the company's leveraged buyout merger with Corporate Risk Holdings, LLC (HireRight, Inc.).
At the same time, the agency assigned a B2 rating to the company's proposed $935 million first-lien senior secured credit facility ($100 million revolver and $835 million term loan) and a Caa2 rating to the proposed $215 million senior secured second-lien term loan.
The outlook is stable.
Proceeds from the proposed credit facilities, along with new and rollover equity, will be used to fund a buyout of HireRight by financial sponsors General Atlantic and Stone Point Capital, in a transaction valued at about $1.4 billion. At transaction close, HireRight will be combined with Genuine Financial.
Proceeds will also be used to refinance all existing debt at both companies, pre-fund one-time Corporate Risk incentive payments and corporate staff costs.
The combined company will enter into a new $100 million revolving credit facility, which is expected to be undrawn at closing.
The current ratings of Corporate Risk, including the Caa1 corporate family rating and positive outlook are not affected and will be withdrawn upon closing of the transaction.
Moody's said it views the merger between HireRight and Genuine Financial strategically sound as it will create a strong competitor with a sizable customer base, wider sector diversification and improved competitive positioning.
© 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.