Moody’s rates A-Gas, loans B2

Moody's Investors Service said it assigned a first-time B2 corporate family rating and a B2-PD probability of default rating to Arthur Midco Ltd. (A-Gas). Concurrently, the agency assigned B2 ratings to the planned $520 million senior secured term loan B borrowed by Arthur US Finco, Inc. and the proposed $60 million senior secured revolving credit facility co-borrowed by Arthur Bidco Ltd. and Arthur US Finco. The outlook is stable for the three companies.

The agency noted A-Gas’ benefits from a supportive regulatory environment and its good profitability compared to its peers.

However, the agency said the company’s Moody’s adjusted leverage of 5.8x for the last 12 months ending in June is somewhat high, but forecasts it to decline to 5.1x by year-end 2023 and to below 4.5x by the end of 2024.

The proceeds, alongside equity financing, will be used to finance the acquisition of a controlling stake in A-Gas by TPG from KKR & Co. Inc. After the transaction concludes, KKR will maintain a minority stake.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.