Moody's rates Altar BidCo loans B1, Caa1

Moody’s Investors Service said it assigned Altar BidCo, Inc.’s planned $1 billion senior secured first-lien credit facility, which is comprised of a $175 million revolving credit facility and an $825 million first-lien term loan and gave a Caa1 rating to the $205 million second-lien term loan.

The agency also assigned first time ratings to Altar including a B2 corporate family rating and a B2-PD probability of default rating.

“Altar's B2 CFR reflects the company's moderate size, high adjusted debt-to-EBITDA (leverage) of 6x (estimated as of September 2021) and risk associated with the separation from its former parent, Brooks Automation, Inc.,” Moody’s said in a press release.

The proceeds along with $2.1 billion of new equity from Thomas H. Lee Partners LP, will be used to fund the acquisition of Altar from its parent company, Brooks Automation, Inc.

The outlook is stable, reflects the expectation that strong end market demand will drive reduction in leverage to under 6x, and a positive free cash flow, the agency said.

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