Moody's rates Avalign loans B2

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to ATI Merger Sub, Inc.

ATI Merger Sub, the initial borrower, will be merged with and into Avalign Holdings, Inc., Moody's said.

Moody's also said it assigned a B2 (LGD 3) rating to the company's proposed $235 million senior secured first-lien credit facilities.

The senior secured first-lien credit facilities are comprised of a $35 million revolving credit facility due in 2023 and a $200 million term loan due 2025.

The outlook is stable.

The proceeds from the $200 million senior secured term loan, along with a privately placed $90 million secured second-lien term loan and about $309 million of sponsor equity contribution, will be used to pay for the leveraged buyout of Avalign by Linden Capital and to pay transaction related fees and expenses.

The ratings reflect Avalign's high financial leverage, small scale and customer concentration, the agency said.

The company's estimated Moody's adjusted debt-to-EBITDA will be about 6.7x at the end of 2018, Moody's said.

The ratings also consider a view that the company will continue to be acquisitive, likely requiring addition debt, the agency added.

© 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.