Moody’s rates Parts Town loan add-on B3

Moody's Investors Service said it extended its B3 rating to the $28 million first-lien senior secured term loan add-on at PT Intermediate Holdings III, LLC (Parts Town).

The first-lien term loan will increase to roughly $300 million.

Parts Town has a B3 corporate family rating, B3-PD probability of default rating, B3 first-lien term loan rating and Caa2 second-lien term loan rating.

The outlook is negative.

Proceeds from the proposed incremental loan, along with about $10 million of ABL borrowings, will be used to finance the acquisition of PartsXpress.

Overall, Moody’s said the additional debt is not expected to materially impact Parts Town leverage while the acquisition of PartsXpress should benefit earnings over time.

However, the agency also recognizes the challenges of acquiring and successfully integrating multiple acquisitions over a relatively short time and that leverage remains high.

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