Moody’s rates Distribution International loan B3, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to DI Purchaser, Inc. (Distribution International Inc.), which is the entity formed following the leveraged buyout of Distribution International by Advent International Corp. from the affiliates of Audax Management Co., LLC and CapStreet Group.

In related actions, the agency assigned a B3 to the company's proposed senior secured term loan due 2021 and a Caa2 to the proposed second-lien senior secured term loan due 2022.

Proceeds from the term loans and an equity contribution from the affiliates of Advent will be used to facilitate the acquisition of Distribution International. The existing ratings at Distribution International will be withdrawn upon closing of the transaction.

The outlook is stable.

Advent is acquiring Distribution International in a leveraged buyout. Distribution International’s new capital structure will consist of an $80 million asset-based revolving credit facility maturing 2019 (unrated) and the two new senior secured loans. Advent's cash contribution is in the form of common equity. Upon closing, Advent will own 91% of Distribution International. Audax and current management will control Distribution International’s remaining shares.

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