Moody's rates East West Manufacturing loans B3

Moody's Investors Service said it assigned first-time ratings to East West Manufacturing LLC, including a B3 corporate family rating and a B3-PD probability of default rating.

Concurrently, Moody's assigned a B3 rating to the company's proposed $275 million seven-year senior secured term loan, $40 million five-year revolving credit facility and $40 million delayed-draw term loan.

The outlook is stable.

Proceeds from the term loans, along with new equity from MSD Partners, and rollover equity from management will primarily be used to fund the acquisition of East West Manufacturing. The delayed-draw term loan will be available for two years and will primarily be used to fund acquisitions.

“The stable outlook reflects Moody's expectation that EWM will pursue acquisitions that will continue to expand scale and diversity while not materially increasing leverage from current levels,” Moody’s said in a news release.

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