Moody’s rates MW Industries loan B2

Moody's Investors Service said it assigned a B2 rating to Helix Acquisition Holdings, Inc.'s (MW Industries) proposed $50 million senior secured first-lien term loan due 2024.

All existing ratings are unchanged, including the B3 corporate family rating, B2 rating on the senior secured bank credit facility, consisting of a revolving credit facility due 2022 and term loan also due 2024, and the Caa2 rating on the senior secured second-lien term loan due 2025.

“The proposed term loan will not be fungible with the existing first-lien term loan facility but will be subject to terms consistent with the existing credit agreement, except for pricing,” the agency said in a news release.

“Proceeds of the new term loan along with $8 million of revolver borrowings and $24 million of sponsor cash equity will be used primarily to finance an acquisition of a manufacturer of small precision components used primarily in medical applications and, to a lesser extent, the aerospace & defense markets.

“The acquisition is credit negative because it continues the company's aggressive acquisition push that is keeping leverage high and contributing to negative free cash flow.”

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