Moody’s assigns NIC B3, loans B3, Caa2

Moody’s Investors Service said it assigned a B3 corporate family rating to NIC Acquisition Corp., an entity that represents Innovative Chemical Products Group, following the acquisition of Gardner-Gibson.

Concurrently, Moody’s assigned B3 ratings to ICP’s newly proposed first-lien credit facilities, which comprise $125 million first-lien revolver and $825 million first-lien term loan, as well as a Caa2 rating to the new $225 million second-lien term loan.

The B3 first-lien ratings are in line with the CFR and reflect the preponderance of the first-lien facilities in the debt capital structure and their priority secured interest in substantially all assets and outstanding equity interest of the borrowers, guarantors and their subsidiaries, the agency said.

The Caa2 second-lien rating, two notches below the CFR, reflects its subordination to the first-lien credit facilities based on Moody’s loss given default for speculative-grade companies methodology, Moody’s said.

Proceeds will be used to refinance ICP’s credit facilities and pay for the acquisition of Gardner-Gibson, as well as transaction-related fees and expenses.

The outlook is stable.

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