Moody’s assigns B2 to Kuehg loans

Moody's Investors Service said it assigned B2 ratings to Kuehg Corp.'s (KinderCare) planned first-lien credit facility consisting of a $160 million five-year revolver due 2028 and a seven-year $1.4 billion term loan due 2030.

The company's other ratings including the B3 corporate family rating, B3-PD probability of default rating and stable outlook are not affected, the agency said.

“The B2 rating for its first-lien credit facility (revolver and term loan) is one notch above the B3 CFR, reflecting the loss absorption and support provided by the significant amount of unsecured operating lease obligations. Moody's expects to withdraw the B2 ratings on the existing revolver and term loan and the Caa2 rating on the second-lien term loan if the facilities are completely retired in conjunction with the proposed refinancing,” the agency said in a statement.

The term loan proceeds will be used to pay down the outstanding first-lien and second-lien term loans as well as related transaction fees.

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