Moody's rates Victory Buyer B3, loans B2

Moody's Investors Service said it assigned initial ratings to Victory Buyer LLC (Vantage Elevator Solutions), including a B3 corporate family rating and a B3-PD probability of default rating. Concurrently, Moody's gave B2 ratings to the company's upcoming senior secured first-lien $85 million revolver and $525 million term loan. The outlook is stable.

“Vantage's B3 CFR is constrained by its high financial leverage and modest revenue scale. Vantage also faces broader manufacturing sector-related headwinds, including supply chain constraints, as well as inflationary pressures brought on by elevated commodity, transportation and labor costs,” Moody’s said in a press release.

The first-lien debt's B2 rating, one notch above the company's B3 corporate family rating reflects its priority in the capital structure above the second-lien term loan, the agency said.

The proceeds, a new unrated $210 million second-lien term loan and new and rollover equity, will be used to fund the acquisition by Ontario Teachers' Pension Plan Board. The current owner, Golden Gate Capital will keep an equity interest in the company.

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