Moody's assigns Conair B2, loan B1

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Conair Holdings LLC. Moody's also assigned a B1 rating to the company's planned $1.165 billion first-lien senior secured term loan. The outlook is stable.

American Securities LLC through its subsidiaries plans to acquire Conair Corp. in a leveraged buyout transaction. Proceeds from the term loan together with a $430 million unrated second-lien term and cash equity will be used to finance the deal. Conair also plans secure a new $400 million asse-based lending revolver which will have seniority over both term loans.

“Moody's expects that Conair's operating performance will remain good over the next 12-18 months with revenue growth of about 3-4%. The company will benefit from its expansion in the mass distribution channels while consumers continue to focus on at-home purchases due to the global pandemic. The company will also experience recovery in its smaller commercial appliance business as restaurants fully reopen. Moody's expects that annual free cash flow will range between $85 million to $95 million over the next 12-18 months,” the agency said in a press release.

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