Moody’s gives Cross Financial, loans B2

Moody’s Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Cross Financial Corp. Moody's also assigned B2 ratings to the company's new $70 million five-year senior secured revolving credit facility and $350 million seven-year senior secured term loan.

Proceeds will be used to refinance the company's credit facilities, repurchase shares from certain equity holders, fund near-term acquisitions and pay related fees and expenses.

“Following the refinancing, Moody's estimates that Cross Financial's pro forma debt-to-EBITDA will be around 5.5x with (EBITDA - capex) coverage of interest between 2.5x-3x and a free-cash-flow-to-debt ratio in the low-to-mid single digits,” Moody’s said in a press release.

The outlook is stable. The outlook reflects the expectation Cross Financial will lower leverage to about 5x over the next year, supplemented by tuck-in acquisitions, the agency said.

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