Moody’s gives WIRB-Copernicus loans B2

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Da Vinci Purchaser Corp., the indirect parent of WIRB-Copernicus.

Moody's also assigned a B2 rating to the company's proposed senior secured first-lien credit facilities, consisting of a $125 million revolver expiring 2024 and a $920 million term loan due 2026.

Proceeds from the new first-lien term loan, the unrated $345 million second-lien term loan, and new common equity from a group of investors led by the private equity firm Leonard Green & Partners (and including Arsenal Capital Partners and Novo Holdings) will be used to finance the acquisition of WCG in a leveraged buyout transaction.

The outlook is stable.

“WCG's B3 corporate family rating incorporates the aggressive financial policies under private equity ownership resulting in very high pro forma debt-to-EBITDA of 7.7x for the trailing twelve months ended September 30, 2019, following the proposed leveraged buy-out,” Vladimir Ronin, Moody's lead analyst for the company, said in a news release.

“However, we forecast that WCG's projected earnings growth, and solid free cash flow generation support a reduction in leverage to the mid-6.0x over the next 12 to 18 months.”

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