Moody's assigns B2 to DexKo loan

Moody's Investors Service said it assigned a B2 rating to DexKo Global, Inc.'s $300 million incremental first-lien term loan due 2028.

The company's other ratings, including its B3 corporate family rating, are unaffected at this time.

DexKo will use the loan to repay a $225 million seller term loan and repay borrowings under its asset-based revolver that were used as part of the financing of DexKo's acquisition of TexTrail in October 2022.

“The transaction is leverage neutral with pro forma debt/LTM EBITDA at about 6.5x at the end of March 31, 2023 (pro forma for acquired earnings). Moody's expects leverage to remain around this high level through 2023 as DexKo captures cost savings and synergies to support earnings while demand pressures in some of its end-markets persist,” the agency said in a press release.

The outlook is stable.

© 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.