Moody’s rates Advantage Sales facilities B1

Moody's Investors Service said it affirmed Advantage Sales & Marketing, Inc.’s (ASM) B2 corporate family rating and B2-PD probability of default rating and assigned B1 ratings to the proposed $200 million revolver and $225 million incremental term loan, both senior secured first-lien and due 2021.

The B1 and Caa1 ratings for the existing senior secured first- and second-lien term loans, respectively, were also affirmed.

The outlook is stable.

Proceeds from the proposed new term loan are expected to be used to finance ten acquisitions in 2017 (three of which have already closed) for $97 million excluding fees, and to term out $55 million of existing revolver borrowings and cover related fees and expenses. The balance of about $68 million will be held in cash on the balance sheet.

"The debt-funded acquisitive nature of ASM is consistent with historical practice and remains within the bounds of our current B2 CFR, particularly in consideration of our expectation that the company will delever through earnings growth and some debt repayment as it continues to evidence stable profitability rates and generate in excess of $100 million in annual free cash flow," Moody's analyst David Berge said in a news release.

© 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.