Moody's rates VXI Global, loans B3

Moody's Investors Service said it assigned first-time ratings to Mars Intermediate Ltd. (VXI Global Solutions), including a corporate family rating at B3, a probability of default rating at B3-PD and a B3 rating to the planned senior secured first-lien credit facility of VXI's subsidiary Mars US Holdco, LLC and co-borrower Mars Investment Holdings, Ltd. The facility will be comprised of a $615 million term loan due 2029 and an undrawn $75 million revolver expiring in 2027.

The proceeds combined with $40 million in unsecured vendor notes and an equity contribution, will be used to finance the purchase of VXI by affiliates of private equity sponsor Bain Capital Private Equity Asia. “Collectively, Moody's regards VXI's high pro forma debt leverage and the company's concentrated equity ownership by BCPE and VXI's founder, as well as a complex organizational structure, as a governance risk under our ESG framework and a key driver of today's credit rating action,” the agency said in a press release.

The outlook is stable. Moody’s said it projects VXI Global’s leverage to decline towards the 6x level by the end of 2023 through EBITDA growth.

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