Moody's assigns AHF, loan B2

Moody's Investors Service said it assigned ratings to AHF Parent Holding, Inc., including a B2 corporate family rating and a B2-PD probability of default rating. Concurrently, Moody's assigned a B2 to the company's planned $215 senior secured first-lien term loan due 2028.

“AHF's B2 CFR broadly reflects its good market position in the U.S. hardwood flooring market, aided by its strong market leading position in the solid wood flooring (SWF) segment, and #2 position in engineered wood flooring (EWF). The company's large domestic manufacturing footprint and differentiated brand portfolio are competitive advantages, with the ability to better service national accounts relative to smaller competitors and service distribution partners without channel conflict,” Moody’s said in a press release.

Loan proceeds, along with new common equity from affiliates of Paceline Equity Partners will fund the leveraged buyout of AHF, including the repayment of AHF's debt. Concurrent with the transaction, AHF is expected to enter a new $50 million asset-based lending revolving facility due 2026, and the company plans to draw $8 million to help pay transaction related fees and expenses.

The outlook is stable.

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