Moody's assigns New Era loan B2

Moody's Investors Service said it rated New Era Cap, LLC’s planned $300 million senior secured first-lien term loan due 2028 B2. The agency also assigned a B1 corporate family rating and a B1-PD probability of default rating. The outlook is stable.

"The B1 CFR reflects governance considerations, particularly New Era's conservative pro forma leverage and majority ownership by its CEO, a fourth generation family member," stated Mike Zuccaro, a Moody's vice president, in a press release.

Term loan proceeds and borrowings under a new unrated $150 million asset based revolving credit facility due 2026 will be used to repay borrowings under New Era's bank credit facilities, fund a dividend to shareholders, and pay related fees and expenses

"The stable outlook reflects our expectation for continued moderate revenue and earnings growth, while maintaining a conservative financial policy, including Moody's-adjusted debt-to-EBITDA remaining below three times and interest coverage above four times over the next 12-18 months," Zuccaro said.

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