Moody's rates CoolSys facilities B3

Moody's Investors Service said it assigned B3 ratings to CoolSys Inc.’s planned $360 million senior secured first-lien term loan B and planned $80 million senior secured first-lien delayed-draw term loan.

Moody’s also affirmed its ratings for CoolSys, including the B3 corporate family rating and B3-PD probability of default rating.

CoolSys will use the term loan proceeds to refinance the company's debt, including the $262 million senior secured first-lien term loan and $40 million delay-draw term loan, $30 million of which was drawn as of June 30. A portion of the proceeds will also be used to fund the acquisition of a company that provides commercial refrigeration service and installation for grocery and supermarket clients.

The company also has a $35 million cash revolver that had $30 million outstanding as of June 30. CoolSys will replace it with a new unrated $70 million senior secured first-lien asset-based lending revolver.

Proceeds from the delayed-draw loan can be used for permitted acquisitions, other permitted investments, and for capital expenditures, or to repay revolver borrowings incurred to fund the foregoing transactions. The delayed draw term loan availability expires in 24 months.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.