Moody’s assigns Smart Start, facilities B2

Moody’s Investors Service assigned first-time ratings to 1A Smart Start LLC, including a B2 corporate family rating, a B2-PD probability of a default rating, and B2 instrument ratings to the company’s senior secured, first-lien debt, which includes a $40 million revolver and a $350 million term loan.

“As one of the world’s largest providers of ignition interlock devices (IIDs), vehicle breathalyzers and their supporting components that prevent impaired driving, Smart Start enjoys a strong competitive position and excellent profitability. These strengths help offset a very small, sub-$200 million revenue scale and rather high Moody’ s-adjusted opening debt-to-EBITDA leverage of six times, pro-forma as of June 30, 2020,” the agency said in a press release.

Term loan proceeds and balance sheet cash will be used to repay $362 million of debt and to pay transaction expenses.

The outlook is stable.

© 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.