Moody’s rates OEConnection B3; facilities B2, Caa2

Moody's Investors Service said it assigned OEConnection LLC a B3 corporate family rating, B3-PD probability of default rating, B2 instrument ratings to new first-lien credit facilities including a $35 million revolver and a $300 million term loan B, and a Caa2 instrument rating to a new $100 million second-lien term loan.

Proceeds from the term loans as well as cash on hand will be used to refinance $266 million of existing OEC debt, pay a $135 million dividend distribution to OEC's owners and satisfy transaction fees and expenses.

The outlook is stable.

Moody’s said the B3 corporate family rating primarily reflects very high, about 8.4 times debt-to-EBITDA leverage (including Moody's standard adjustments) expected at closing of the transaction, and the agency’s belief that the measure will moderate slowly over the next 12 to 18 months, as organic revenues continue to grow at mid- to upper-single-digit-percentage rates and EBITDA grows slightly more quickly.

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