| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for Audio Visual Services Group, Inc. > News item |
Moody's rates Audio Visual Services loans Ba3, B3
Moody's Investors Service said it assigned B1 corporate family and probability-of-default ratings to Audio Visual Services Group, Inc., Ba3 ratings (LGD3, 37%) to its $30 million first-lien revolving credit facility due 2013 and $225 million first-lien term loan facility due 2014 and a B3 (LGD5, 88%) rating to its $60 million second-lien term loan facility due 2014.
The ratings were assigned in connection with the pending leveraged buyout of Audio Visual's parent holding company, Audio Visual Services Corp. The parent company's B1 corporate family rating, B2 probability-of-default rating and Ba3 (LGD2, 28%) $20 million senior secured revolving credit facility due 2010 and $73 million senior secured term loan facility due 2011 were affirmed.
The outlook is stable.
The parent company will be acquired by Kelso & Co. in a leveraged buyout for a total enterprise value of $413.4 million, including fees and expenses. The transaction is expected to be financed with the $225 million first-lien term loan, the $60 million second-lien term loan and an equity contribution of $128.4 million.
The agency said that despite a substantial increase in leverage resulting from the acquisition by Kelso, Audio Visual Services' pro forma credit metrics position the company solidly in the B1 rating category. The ratings benefit from long-standing relationships and long-term contracts with major hotel chain customers and good growth prospects in the intermediate term.
The key constraints on the ratings include revenue concentration with top hotel chain customers, significant capital expenditure requirements and dependence on business travel, Moody's said.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.