Moody's rates Minotaur loans B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating to Minotaur Acquisition, Inc., the acquisition vehicle through which entities of Abry Partners intend to acquire Millennium Trust Co., LLC.

The agency also said it assigned B2 ratings to Minotaur's $610 million senior secured first-lien term loan and $90 million revolving credit facility, along with a Caa2 rating to its $245 million second-lien term loan.

The outlook is stable.

Minotaur's credit profile reflects Millennium's growing client cash balance base, strong EBITDA margin and market leadership in the automatic rollover individual retirement account (IRA) market, Moody's said.

In 2019, the agency said it expects Millennium's revenue and cash flow to benefit from its strong growth in accounts and client cash balances during 2018, which will result in stronger fees earned from increased interest rates at Millennium's cash sweep program.

In December 2018, Abry Partners agreed to make a significant investment in Minotaur, the agency said.

Moody's said the transaction will result in a significant increase in Minotaur's leverage, leaving little room for additional debt at the current rating level.

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