Moody’s gives Parts Town B3, loans B2, Caa2

Moody's Investors Service said it assigned a B2 rating to PT Intermediate Holdings III, LLC's, (Parts Town) proposed $200 million first-lien senior secured term loan and a Caa2 rating to its $82.5 million second-lien senior secured term loan.

In addition, the agency assigned a B3 corporate family rating and B3-PD probability of default rating.

The outlook is stable.

Proceeds from the proposed $283 million in senior secured bank facilities, along with a $50 million guaranteed senior secured asset-based loan facility (ABL) (unrated, undrawn at close) will be used to refinance about $272 million of outstanding debt.

Moody’s said the B3 corporate family rating reflects Parts Town's modest scale based on revenues, ongoing acquisition strategy and high financial leverage as well as revenue concentration, short track record following increase in scale and a fully valued purchase price.

The ratings are supported by Parts Town's relatively steady revenue stream, stable customer and supplier base, low capex requirements and good liquidity, the agency added.

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