Moody’s rates Five Star B3, loans B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Five Star Holding Corp.

Moody's also assigned a B2 rating to the company's first-lien credit facility consisting of a $100 million revolving credit facility expiring in 2027 and a $630 million first-lien term loan maturing in 2029, and a Caa2 rating to the $250 million second-lien loan due in 2030.

The outlook is stable.

The proceeds from the term loans will be used to finance the acquisition of Five Star by The Jordan Co.

"Five Star's material science capabilities and vertical integration of finished products, including recyclable resin inputs, provide valuable customer solutions and support healthy EBITDA margins,” Scott Manduca, vice president at Moody's, said in a news release.

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