Moody's ups, rates Helix loans B2

Moody's Investors Service raised Helix Acquisition Holdings, Inc.’s ratings, including the corporate family rating and probably of default rating to B3 and B3-PD from Caa1 and Caa1-PD, respectively. Moody's also upgraded the senior secured first-lien credit facilities to B2 from B3 and assigned a B2 rating to the new $95 million senior secured first-lien term loan and $70 million senior secured revolving credit facility. Lastly, the agency boosted the senior secured second lien term loan rating to Caa2 from Caa3.

“The upgrade of the ratings reflects the ongoing improvement in Helix's credit metrics and Moody's expectation for this trend to continue with debt to EBITDA (including Moody's adjustments) expected to be about 5.5x by the end of 2022. The upgrade also includes Moody's expectation that Helix will generate steadily improving EBITDA margin of around 25% and positive free cash flow through 2022 despite near-term headwinds including higher freight and material costs and supply channel disruptions,” the agency said in a press release.

Helix will use the term loan proceeds to fund two acquisitions and put about $10 million of cash on the balance sheet. Additionally, as part of the transaction, the company will extend the maturity on its $70 million revolving credit facility by two years to 2024.

The outlook remains stable.

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