Moody’s gives Service King loans B2

Moody’s said it gave assigned a B2 rating to Midas Intermediate Holdco II, LLC (Service King) proposed $700 million term loan and $91 million revolving credit facility.

The agency also changed the outlook to positive from negative and affirmed all the company’s ratings, including its Caa1 corporate family rating and Caa2-PD probability of default ratings.

“The change in outlook to positive recognizes the favorable impact on liquidity from the proposed refinancing of the bank credit facilities,” stated Charlie O’Shea, a Moody’s vice president, in a press release.

“The affirmation of the Caa1 CFR and Caa2-PD PDR reflects Moody’s concern that work remains with Service King’s capital structure, with the proposed new facilities subject to a ‘springing’ maturity inside the October 2022 notes maturity in the event these notes have not been reduced below $135 million by July 1, 2022,” added O’Shea.

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