Moody's rates Sundyne loans B2

Moody's Investors Service said it assigned initial ratings to Sundyne U.S. Purchaser, Inc., including a corporate family rating of B2 and probability of default rating of B2-PD.

Moody's also said it assigned a B2 (LGD 3) rating to the company's first-lien senior secured credit facilities, including its $100 million first-lien senior secured revolving credit, $30 million letter of credit facility and $450 million first-lien senior secured term loan.

The outlook is stable.

The proceeds will be used to fund a $440 million dividend to Sundyne's sponsors, the Carlyle Group LP, Moody's said, and funds advised by BC Partners.

Sundyne is a carve-out of Accudyne Industries Borrower SCA, the agency explained.

The ratings reflect the company's modest $270 million revenue base and high financial leverage with pro forma 2018 debt-to-EBITDA of 5.5x, Moody's said.

Sundyne's good liquidity profile is supported by the expectation of positive annual free cash flow generation, healthy cash balances and good revolver availability, the agency said.

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