Moody’s rates AmeriLife loans B2, Caa2

Moody's Investors Service said it affirmed the B3 corporate family rating and B3-PD probability of default rating of AmeriLife Group, LLC following news that the company plans to refinance its existing senior secured credit facilities.

The agency also said it assigned a B2 rating to AmeriLife's proposed first-lien senior secured credit facility and Caa2 rating on its second-lien senior secured credit facility.

The proceeds will be used to refinance the company's existing $234 million senior secured term loans, fund near-term acquisitions, pay a shareholder dividend and pay related fees and expenses, Moody’s said.

The agency also said it changed Amerilife's outlook to stable from positive based on the pending increase in financial leverage.

The ratings reflect the company’s good market position in delivering health, fixed annuity, life and supplemental products to the growing senior population, especially in Florida, Moody’s said.

These strengths are offset by the company's high financial leverage and modest size relative to other rated insurance brokers and service companies, the agency said.

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