Moody's rates Capital Safety loans B1, Caa1

Moody's Investors Service said it assigned B1 (LGD3, 41%) ratings to Capital Safety North America Holdings Inc.'s proposed $65 million first-lien revolving credit facility due 2019 and $700 million first-lien term loan due 2021, assigned a Caa1 (LGD6, 91%) rating to its proposed $135 second-lien term loan due 2022 and affirmed the company's B2 corporate family and B2-PD probability of default ratings. The outlook is stable.

Proceeds will be used to fund a dividend primarily to Kohlberg Kravis Roberts & Co. and to repay about $418 million due on its term loan and $125 million of private high-yield debt.

The agency said the B2 corporate family rating reflects Capital Safety's small scale, meaningful debt and high revenue concentration in fall protection products.

The rating also recognizes the cash generating and deleveraging capacity that is supported by the company's strong business position and its high profit margins, Moody's said, although these strengths are mitigated by a financial strategy geared toward returning capital to shareholders.

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