Moody's rates American Auto loans B2, Caa2

Moody's Investors Service said it assigned B2 ratings to American Auto Auction Group, LLC’s new revolving credit facility and first-lien term loan and a Caa2 rating to the new second lien term loan. The agency also gave the company a B3 corporate family rating and a B3-PD probability of default rating.

“The B3 corporate family rating balances the company's sound position in the market for used car auctions, its high profit margins, attractive free cash flow, as well as very high financial leverage. The B2 ratings of the proposed $60 million revolving credit facility and the $570 million senior secured first-lien term loan reflect the priority claim of these instruments on substantially all of the company's assets, while the Caa2 rating of the proposed $180 million senior secured second-lien term loan takes into account the substantial amount of higher ranking debt in the company's liability structure,” Moody’s said in a press release.

American Auto Auction Group plans to arrange the loans in connection with Brightstar Capital Partners’ acquisition of the company.

The outlook is stable.

© 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.