Moody’s assigns Imperial Dade loan B3

Moody’s Investors Service said it assigned a B3 rating to BCPE Empire Holdings, Inc.’s (Imperial Dade) proposed $180 million incremental first-lien term loan due 2026.

Proceeds will be used to refinance $30 million of borrowings on the company’s unrated asset-based lending revolving facility, fund six acquisitions currently under letters of intent for $105 million and increase balance sheet cash by about $35 million.

“The transactions are credit negative because they will moderately increase financial leverage and cash interest expense at a time when revenue is declining because of store closures and volume reductions at Imperial Dade’s foodservice customers,” Moody’s said in a press release.

Concurrently, Moody’s affirmed Imperial Dade’s ratings, including the company’s corporate family rating at B3, probability of default rating at B3-PD, the rating on its senior secured first-lien term loan due 2026 at B3, and the rating on its senior secured second-lien term loan due 2027 at Caa2.

The outlook remains stable.

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