Moody’s gives NVA notes Caa2, revolver B1

Moody’s Investors Service said it assigned a Caa2 (LGD5) rating to NVA Holdings, Inc.'s proposed $500 million senior notes due 2025.

Proceeds will be used to repay the company's existing $400 million second-lien term loan due 2022 and $90 million drawing on the revolving credit facility, to cover transaction costs and to fund pending acquisitions.

The agency also assigned a B1 (LGD3) rating to NVA's revolving credit facility, which will have same terms as the existing revolving facility except for an upsized amount of $140 million from $94.5 million and an extended expiration in 2023.

Concurrently, Moody's affirmed the company's B3 corporate family rating, B3-PD probability of default rating and B1(LGD3) senior secured first-lien term loan rating.

The outlook is stable.

"The refinancing transactions will increase NVA's leverage slightly but considering the incremental pro forma profits contribution from recent acquisitions, we expect the leverage to remain at a level consistent with a B3 corporate family rating," Moody's vice president Kailash Chhaya said in a news release.

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