Moody’s assigns B3 to Americold CFR, loan

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Americold Realty Trust and a B3 (LGD3) rating to its $325 senior secured term loan B due 2022.

The company will use the proceeds from the term loan B to refinance a CMBS obligation maturing in February 2016 and pay related transaction fees.

The outlook is stable.

Moody’s said the B3 corporate family rating reflects elevated financial leverage given Americold's risk profile, and recent volatility in sales and free cash flow related to the firm's service offerings. Liquidity is weak, as there is insufficient internal sources or committed funding to address the late 2016 maturity at this time.

The B3 rating also recognizes Americold's strong business profile as a leader in the cold storage business, which is critical to the food supply chain and has demonstrated resistance to macroeconomic weakness, and the firm's management team with substantial experience in the food and beverage sector, the agency said.

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