Moody’s rates Cardinal, facilities B2

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Cardinal Holdings 3, LP.

Concurrently, the agency assigned a B2 instrument rating to the new $250 million senior secured term loan due 2024 and the new $65 million senior secured revolving credit facility due 2022, both borrowed at subsidiary Cardinal US Holdings, Inc.

The new debt supports the acquisition of a majority shareholding in Cardinal Holdings’s by private equity firm CD&R.

The outlook on all ratings is stable.

Moody’s said the B2 corporate family rating reflects in the first instance the Moody's-adjusted debt/EBITDA of 4.9 times for 2016, pro-forma for the new capital structure and on a stand-alone basis but without run-rate adjustments for headcount changes and including current compensation arrangements.

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