Moody's assigns AqGen Island B3

Moody's Investors Service said it assigned a first-time B3 corporate family rating and B3-PD probability of default rating to AqGen Island Holdings, Inc. (Ascensus).

Concurrently, Moody's assigned a B2 rating to the planned senior secured first-lien credit facilities, which consists of a $175 million revolving credit facility and a $1.05 billion term loan. Finally, the agency gave a Caa2 rating to the proposed $450 million senior secured second-lien term loan.

Proceeds, along with $1.435 billion of new cash equity from Stone Point Capital and Singapore's sovereign wealth fund GIC and $180 million of management and existing rollover equity, will be used to acquire Ascensus from the previous equity holders, refinance debt, and pay fees and expenses related to the deal.

The ratings at AqGen Ascensus, Inc. will be withdrawn upon closing of the transaction and repayment of its debt instruments, the agency said.

“The assignments reflect high governance risk associated with private equity ownership, including tolerance for high leverage and the potential for debt-funded acquisitions or shareholder distributions,” Moody’s said in a press release.

The outlook is stable. The outlook reflects expectations for positive but modest free cash flow, low-single digit organic revenue growth rate over the next 12-18 months, and continued high leverage above 7x, the agency said.

© 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.