Moody’s rates Alpha AB loans B2

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Alpha AB Bidco BV, an intermediate holding company of Ammeraal Beltech and Megadyne Group.

The agency also assigned B2 instrument ratings to the group's proposed €830 million senior secured term loan B maturing in 2025 and proposed €150 million senior secured revolving credit facility maturing in 2025.

Moody’s withdrew the B3 corporate family rating and B3-PD probability of default rating assigned to AI Alabama Midco BV, the existing holding company of Ammeraal.

The outlook is stable.

The new financing, in combination with common equity, will be used to fund the acquisition by Partners Group of Ammeraal and Megadyne from Advent International and Astorg Partners, respectively, and to cover transaction related fees and expenses.

“The assigned B3 corporate family rating, strongly positioned in this rating category, with a stable outlook balances the group's high initial leverage pro forma for the acquisitions, moderate free cash flow generation and some integration risks, with its leading positions in the global light-weight belting markets, sound business model and expected earnings improvements thanks to merger related synergies,” Goetz Grossmann, Moody's lead analyst for Alpha, said in a news release.

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