Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers H > Headlines for Holley Purchaser Inc. > News item |
Moody's rates Holley loan B2
Moody's said it assigned first time ratings for aftermarket engine products company Holley Purchaser, Inc., including a B3 corporate family rating and a B3-PD probability of default rating.
Moody's also assigned B2 ratings to the proposed senior secured first-lien bank credit facilities, including a $50 million revolver due 2023, a $380 million term loan due 2025 and a $20 million delayed-draw term loan due 2025. A stable outlook was assigned.
“Holley's initial leverage is high for the rating category and does not provide it with enough cushion to withstand a cyclical downturn,” said Moody’s analyst Inna Bodeck in a news release.
“We also believe that the roll-up strategy using debt financing will impose additional risks absent substantial debt repayment.”
The proceeds from the first-lien term loans along with a $145 million senior secured second-lien term loan (unrated) and new cash equity will be used to complete the acquisition of Holley Performance Products by Sentinel Capital Partners. At the time of the acquisition, Sentinel intends to combine Holley Performance Products with Driven Performance Brands, an existing Sentinel portfolio company, which will form the borrower, Holley Purchaser, Inc.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.