Moody’s gives Lummus B2, loans B1, notes Caa1

Moody’s Investors Service said it assigned first-time ratings to Illuminate Buyer, LLC (Lummus Technology), including a b2 corporate family rating and a B2-PD probability of default rating.

Moody’s also assigned a B1 rating to the proposed $1.05 billion first-lien senior secured term loan, $175 million senior secured revolving credit facility and Caa1 rating to the proposed $460 million of senior unsecured notes.

The proceeds in conjunction with $1.258 billion of equity will be used to fund the $2.725 billion purchase of Lummus from McDermott International, Inc. to a joint partnership between the Chatterjee Group and Rhône Capital as well as transaction fees and expenses.

“The assigned B2 rating reflects Lummus Technology’s strong technology platform and business model with a healthy backlog offset by high initial leverage and the currently challenging economic environment for its two major end markets,” said Domenick R. Fumai, a Moody’s vice president and lead analyst for Illuminate Buyer, in a press 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.