Moody's rates BIFM CA loan B1

Moody's Investors Service said it assigned ratings to BIFM CA Buyer Inc., including a B3 corporate family rating, B3-PD probability of default rating and B1 (LGD 3) ratings to its proposed senior secured revolving credit facility and senior secured first-lien term loan.

BIFM US Finance LLC is a co-borrower on the debt.

BIFM is a newly formed acquisition vehicle by CCMP Capital Advisors LP, a private equity firm, to acquire BGIS Group from Brookfield Business Partners for about C$1.4 billion.

The outlook is stable.

The proceeds from a new $455 million senior secured first-lien term loan and new C$195 million senior secured second-lien term loan, together with C$592 million of common equity contributed by CCMP, will be used to purchase BGIS and to pay fees and expenses.

The new $75 million senior secured revolving credit facility is not expected to be drawn at close, Moody's said.

The ratings are constrained by pro forma adjusted debt-to-EBITDA ratio of 7.1x for 2018 and an expectation that the metric will be sustained near that level in the next 12- to 18-months as free cash flow may be used for acquisitions in the United States, the agency said.

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