Moody's rates Star US Bidco, loans B2

Moody's Investors Service said it assigned initial ratings to Star US Bidco, LLC (Sundyne), including a corporate family rating of B2 and a probability of default rating of B2-PD. Moody's also assigned a B2 rating to the company's first-lien senior secured credit facilities, including a $100 million revolver, a $30 million letter of credit facility and a $535 million term loan. The outlook is stable.

Proceeds together with new cash equity from private equity sponsor Warburg Pincus will fund the acquisition of Sundyne from current financial sponsor owners BC Partners Advisors and The Carlyle Group.

“Post the acquisition of Sundyne by its new sponsor, we expect the company will generate double-digit free cash flow growth supported by a strong EBITDA margin profile and free cash flow conversion,” said Gigi Adamo, a Moody's vice president, in a press release.

“Further, the company's focus on a niche sector within the energy end-market with a sizable portion of recurring revenue also supports Sundyne's credit profile,” Adamo added.

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