Moody’s: Transplace B3, facilities B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Tupelo Buyer, Inc. (Transplace).

Concurrently, the agency assigned B2 ratings to the company's first-lien senior secured revolving and term loan facilities and a Caa2 rating to the second-lien senior secured term loan.

Proceeds from the new credit facilities along with a sponsor equity contribution will be used to fund the roughly $920 million acquisition of Transplace by TPG Capital.

Tupelo Buyer, Inc. will merge into Transplace Holdings, Inc. upon close of the transaction with Transplace Holdings acting as the borrower going forward.

The outlook is stable.

Moody’s said the B3 rating considers Transplace's modest scale, the company's weak balance sheet with elevated financial leverage as well as the highly competitive nature of the third-party logistics space that constrains profitability.

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