Moody’s assigns B3 to Red Fox, loan

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Red Fox CD Acquisition Corp. (Cook & Boardman Group LLC). At the same time, the agency also assigned a B3 rating to Cook & Boardman's planned senior secured first-lien term loan. The outlook is positive.

The loan and a new common equity contribution by Platinum Equity will fund a leveraged buyout of Cook & Boardman, including repayment of the company's debt and transaction-related fees and expenses. Upon repayment, Moody's will withdraw Cook & Boardman's current ratings.

"The refinancing of Cook & Boardman's material maturities is credit positive, and the positive outlook reflects Moody's expectations of near-term strength in commercial end markets and relatively conservative financial policies compared to B3 peers with respect to the company's leverage profile and capital allocation," said Nirali Patel, Moody's analyst, in a press release.

The agency said it expects the company to keep its leverage low with adjusted debt to EBITDA of around 5x by year-end 2024.

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