Moody’s assigns Kodiak B1, loan B2

Moody’s Investors Service said it assigned a first-time B1 corporate family rating and B1-PD probability of default rating to Kodiak BP, LLC, operating as Kodiak Building Partners Inc. Moody’s also assigned a B2 rating to Kodiak’s planned senior secured term loan. The outlook is stable.

“Kodiak’s B1 CFR reflects Moody’s expectation that the company will remain highly leveraged. Moody’s projects adjusted debt-to-LTM EBITDA will approximate 4x at year-end 2021,” the agency said in a press release.

Kodiak’s capital structure will consist of a $200 million asset-based revolving credit facility, not rated by Moody’s and a $540 million senior secured term loan.

“The B2 rating assigned to Kodiak’s senior secured term loan, one notch below the corporate family rating, results from its subordination to the company’s asset-based revolving credit facility. The term loan has a first lien on substantially all noncurrent assets and a second lien on assets securing the company’s asset-based revolving credit facility (ABL priority collateral),” Moody’s said.

Term loan proceeds and available cash will be used to refinance Kodiak’s debt of about $367 million, fund a dividend to equity holders, affiliates of Court Square Capital Partners and management, and pay related fees expenses.

The stable outlook indicates an expectation that leverage will not deteriorate over the next 18 months, the agency said.

© 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.