Moody's assigns WHP, facilities B2

Moody's Investors Service said it assigned first-time ratings to WH Intermediate, LLC (WHP Global), including a B2 corporate family rating and a B2-PD probability of default rating. The agency also gave B2 ratings to the planned senior secured credit facilities to be issued by WHP's subsidiary, WH Borrower, LLC, consisting of a $50 million revolving credit facility and $450 million term loan.

“The B2 CFR assignment reflects governance considerations, including high pro forma leverage of around 5.5 times and majority private equity ownership. It also reflects WHP's relatively short operating track record having been founded in 2019. While initial leverage is high, Moody's expects that leverage will decline to below five times over the next year as the company integrates recent sizable acquisitions and new license contracts as well as through potential further acquisitions using balance sheet cash. The rating also reflects the relatively stable and predictable revenue and cash flow streams derived from the licensed business model, as well as strong profit margins and interest coverage metrics,” the agency said in a press release.

The proceeds will be used to refinance indebtedness, fund a dividend, put excess cash on balance sheet and pay related fees and expenses.

The outlook is stable.

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