Moody’s affirms Weld North

Moody's Investors Service said it affirmed the B2 corporate family rating and B2-PD probability of default rating of Weld North Education LLC following the company's proposed $250 million term loan add-on transaction.

Moody's also affirmed the B2 rating for the company's first-lien senior credit facilities.

The outlook remains stable.

Proceeds from the $250 million add-on to its first-lien term loan along with an equity contribution from its sponsor Silver Lake Partners will be used to fund the acquisition of Glynlyon, Inc.

“Pro forma for the Glynlyon acquisition, leverage will increase to 6.9x as of December 31, 2018 which is high for B2 rating level,” Joanna Zeng O'Brien, Moody's lead analyst for Weld North, said in a news release.

“However, Weld North has very good liquidity with $104 million cash on balance sheet and free cash flow as a percentage of debt estimated to be maintained at around 5%, which supports the affirmation of the B2 corporate family rating.”

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