Moody’s rates CLEAResult loans B1, Caa1

Moody's Investors Service said it assigned Conserve Merger Sub, Inc. a B2 corporate family rating, B2-PD probability of default rating, B1 ratings to the proposed first-lien revolver and first-lien term loan and a Caa1 rating to the proposed second-lien term loan.

The outlook is negative.

In connection with a proposed acquisition by TPG of CRCI Holdings, Inc., Conserve Merger will merge into CRCI Longhorn Holdings, Inc. Both Conserve Merger and CRCI Longhorn will do business as CLEAResult.

TPG agreed to acquire CRCI Holdings from its current majority owner General Atlantic. Proceeds from a $425 million new first-lien term loan, $150 million second-lien term loan and $305 million of sponsor equity will be used to acquire CLEAResult, put about $25 million of cash to the balance sheet of CLEAResult and pay fees and expenses.

Moody’s said the corporate family rating reflects Moody's-adjusted leverage of about 7.4 times at March 31, following the LBO acquisition by TPG, its highly acquisitive financial policy, small scale and a limited revenue base.

The ratings are supported by the company's leading position as a provider of outsourced energy efficiency optimization solutions, the strategic and regulatory driven importance of the company's services to its customers and its strong recurring revenue stream.

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