Moody's assigns Colibri, loans B3

Moody's Investors Service said it assigned first-time ratings to McKissock Investment Holdings, LLC (Colibri), including a B3 corporate family rating, a B3-PD probability of default rating and B3 ratings for its first-lien bank credit facilities.

Colibri is pursuing a refinancing transaction. Proceeds from the expected $400 million first-lien term loan will be used to repay Colibri's $286 million of debt, fund a $119 million distribution to its shareholders including the Gridiron Capital and pay related fees and expenses. Colibri is also raising a $30 million five-year revolving credit facility due 2026 that will be undrawn at closing.

“Colibri's B3 CFR broadly reflects its very high financial leverage with Moody's adjusted debt-to-EBITDA of over 8.0x after deducting software development cash outlays for the trailing 12 months ended March 31, 2021 (pro forma for the proposed refinancing transaction and the full-year earnings of recent acquisitions). Barring additional borrowings, Moody's expects debt-to-EBITDA leverage will decline to about 6.5x over the next 12 to 18 months with earnings growth as well as realization of synergies from past acquisitions,” the agency said in a press release.

The outlook is stable.

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