Moody’s gives Shape facilities B2

Moody’s Investors Service said it affirmed Shape Technologies Group, Inc.'s B2 corporate family rating and B2-PD probability of default rating. The outlook is stable.

The agency also assigned a B2 rating to the company's proposed $315 million first-lien senior secured credit facilities, consisting of a $15 million first-lien senior secured revolving facility due 2023 and $300 million first-lien senior secured term loan due 2025.

Proceeds will be used to refinance its existing $225 million senior secured notes due 2020 and to pay down $25.7 million on the existing revolving facility due 2019. The remaining balance will go to cash on the balance sheet.

Shape is also seeking to raise a $60 million asset-based revolver due 2023 and $15 million first-lien cash flow revolver due 2023.

"The company is addressing its liquidity needs and maturities at a time when it is experiencing good growth and needs capital to support its customers," Inna Bodeck, lead analyst with Moody's, said in a news release.

"However, we would like to see Shape to manage through working capital needs such that it alleviates the pressure from the free cash flow."

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