Moody's rates Cook & Boardman loan B3

Moody's Investors Service said it assigned a B3 rating to the Cook & Boardman Group, LLC's proposed $25 million delayed-draw term loan, which will be used for future acquisitions. Terms and conditions are identical to the company's existing term loan.

The B3 rating on the company's senior secured term loan due 2025, which is being increased to $295 million from $245 million is not affected. Proceeds from the incremental $50 million term loan will be used to repay revolver borrowings, which were used mainly for previous acquisitions.

The increased term loan along with equity contributed by affiliates of Littlejohn & Co. (Littlejohn), the primary owner of C&B, will also be used to fund an acquisition. C&B's B3 corporate family rating (CFR) and B3-PD probability of default rating are not affected by the proposed transactions. The outlook remains stable.

Moody's said it views the proposed upsizing of the term loan as credit positive, since C&B is adding to its liquidity by terming out revolver borrowings. Additionally, the proposed acquisition expands C&B's geographic reach into southeast Pennsylvania, furthering the company's growth strategy in the mid-Atlantic region and provides new products.

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