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Moody's assigns Crosby loans B2, Caa2
Moody's Investors Service said it assigned B2 ratings to Crosby US Acquisition Corp.'s new first-lien senior secured credit facilities and a Caa2 rating to its new $50 million second-lien term loan add-on. The facilities include an amendment to the revolver upsizing availability by $50 million to $120 million and extending the expiration of the facility by one year through 2025. The B2 rating was also assigned to the company's $330 million first-lien term loan add-on.
Moody's also noted the B3 corporate family rating and B3-PD probability of default rating are unchanged. Additionally, the existing B2 senior secured term loan facilities ratings and Caa2 second-lien term debt rating are unchanged. Moody's expects the terms and conditions for both new tranches to be similar to the existing debt securities.
Crosby will use the proceeds to buy Kito Corp. The acquisition was announced on May 16.
“The acquisition will be partially funded with a cash contribution from Kohlberg Kravis Roberts & Co and available cash. Therefore, Moody's expects financial leverage, measured as debt-to-LTM EBITDA to improve to about 6x at the end of 2022, from about 8.5x at March 31, 2022, and then decline to about 5.6x in 2023,” the agency said in a press release.
The outlook is stable.
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