Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers O > Headlines for OrthoLite > News item |
Moody’s rates Ortholite CFR, facilities B2
Moody's Investors Service said it assigned B2 ratings to O2 Partners, LLC's (doing business as Ortholite) proposed $212 million senior secured credit facilities.
The agency also assigned a B2 corporate family rating and a B3-PD probability of default rating to the company.
The outlook is stable.
Ortholite intends to use proceeds from the proposed term loan to refinance existing debt and fund a dividend to shareholders of its parent company, BP Ortholite LLC, and pay fees and expenses.
Moody’s said the B2 corporate family rating reflects small revenue scale, narrow product focus on high-performance footwear insoles and high concentration of sales with a few sizeable branded footwear companies.
The rating also considers the inherent risks of being owned by a private equity sponsor, specifically as it relates to the potential for shareholder-friendly financial policies.
At around 4 times, Moody’s said Ortholite's pro forma lease-adjusted debt/EBITDAR will be moderate following the proposed debt-financed dividend, although debt is higher than the company's trailing-12-month revenue. Interest coverage will exceed 3 times.
© 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.