Moody’s assigns ECi B3

Moody’s Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to ECI Macola/Max Holding, LLC after acquiring a controlling share by private equity firm Leonard Green Partners, LLC.

Moody’s also affirmed the B2 ratings on the first-lien debt facilities and the Caa2 ratings on the second-lien notes. The existing debt is portable to the new owners and will remain in place post-closing. The CFR and PDR for the company under Apax ownership will be withdrawn at closing.

“ECi’s B3 CFR reflects its high leverage, small business scale relative to competitors, the company’s exposure to cyclical end markets and small customer business risk. ECi’s pro forma leverage is approximately 8.9x excluding certain one-time costs (or 7.9x including planned synergies) based on June 30, 2020 trailing EBITDA,” Moody’s said in a press release.

The outlook is stable.

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