Moody’s gives Amentum loan B1

Moody’s Investors Service said it rated Amentum Government Services Holdings LLC's new $1.3 billion first lien term loan B1 and changed the outlook to stable from under review.

Concurrently, the agency confirmed Amentum’s B2 corporate family rating, B2-PD probability of default rating and B1 rating on its outstanding first-lien credit facilities.

Amentum is also upsizing its revolving credit facility by $100 million to $350 million. Debt proceeds, along with $112 million in cash and $550 million from an unrated second-lien term loan, will be used to fund the acquisition of PAE Holdings Corp.

These actions conclude the ratings review on Amentum started on Oct. 28, Moody’s said. PAE's ratings will be withdrawn at transaction close.

“The confirmation of ratings reflects Amentum's enhanced business profile from increased revenue size, technical capabilities and greater customer reach through its combination with PAE," said Shirley Singh, a Moody's vice president and lead analyst for Amentum, in a press release. "Leverage is high, with debt/EBITDA at 6.5x, but the company has a good backlog position and liquidity.”

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