Moody’s rates LSF9 term loan Ba3

Moody's Investors Service said it assigned LSF9 Atlantis Holdings, LLC (A2Z Wireless Holdings Inc.) a B1 corporate family rating and a B1-PD probability of default rating.

The agency also assigned a Ba3 rating to the company's proposed $510 million first-lien secured term loan.

A positive outlook was also assigned.

Proceeds, along with cash on hand, will be used to refinance the company's roughly $482 million of existing debt and to pay transactions fees and expenses. The company is also entering into a $70 million asset-based revolving facility (unrated). The proposed new secured credit facility will be issued by LSF9 Atlantis and will be secured and guaranteed by its wholly owned subsidiary A2Z Wireless, which operates the company's retail business of independent Verizon retail locations.

"The new rating reflects the competitive advantages and franchise strength that result from A2Z Wireless' position as Verizon's largest independent retailer," Moody's vice president Charlie O'Shea said in a news release.

"The rating is also supported by the company's favorable qualitative credit profile, and good liquidity."

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