Moody’s rates Cook & Boardman loan B3

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Cook & Boardman Group, LLC.

The agency assigned a B3 rating to the company's proposed senior secured term loan due 2025.

Proceeds from the new debt along with an equity contribution in the form of common stock from affiliates of Littlejohn & Co. will be used to finance the leveraged buyout of Cook & Boardman from affiliates of Ridgemont Equity Partners.

The outlook is stable.

Moody’s said the corporate family rating results from the company’s leveraged capital structure following the buyout.

“Large amounts of balance sheet debt and resulting cash interest payments, as well as higher levels of working capital to meet growth demands, will result in slightly positive adjusted free cash flow-to-debt over our time horizon,” the agency said in a news release.

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