Moody’s rates Weld North, facilities B2

Moody's Investors Service said it assigned Canyon Buyer, Inc. (Weld North) a B2 corporate family rating, B2-PD probability of default rating, a B2 rating to its proposed $300 million senior secured first-lien term loan and a B2 rating to its proposed $55 million senior secured first-lien revolving credit facility.

The outlook is stable.

Proceeds, along with new and management-rolled equity, will be used to finance the acquisition of Weld North Education LLC by funds affiliated with Silver Lake Partners.

Moody’s said the B2 corporate family rating broadly reflects Weld North's high initial leverage, limited historical financial data, and small scale.

These risks are offset to some degree by the company's strong free cash flow generation and expectations of revenue and EBITDA growth in the high-single-digit percent range driven by secular growth of digital instruction materials and technology adoption by schools, the agency explained.

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