Moody’s rates Insurity loans B2

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Huskies Parent, Inc. (Insurity Inc.) in connection with the issuance of new credit facilities.

Insurity's proposed $40 million senior secured revolving credit facility and $370 million senior secured first-lien term loan were assigned ratings of B2.

The outlook is stable.

Proceeds from the proposed $370 million first-lien term loan, $160 million (unrated) second-lien term loan, and about $820 million of new cash equity will be used to fund the acquisition of Insurity by funds affiliated with GI Partners, repay existing debt, and pay transaction fees and expenses of roughly $22 million.

“Insurity's B3 corporate family rating broadly reflects its high leverage pro forma for the proposed debt issuance, modest free cash flow generation, small scale as measured by revenues, and limited geographic and end-market diversification,” the agency said in a news release.

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