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Moody’s rates Henry CFR, facilities B2
Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to ASP Henry Merger Sub, Inc. (doing business as Henry Co. LLC) following the leveraged buyout of Henry by American Securities LLC from affiliates of Graham Partners.
In related actions, the agency assigned a B2 rating to the company's proposed first-lien credit facilities, consisting of a $40 million revolving credit facility expiring 2021 and a $320 million term loan due 2023.
Proceeds from the new term loan, along with a common equity contribution from the affiliates of American Securities, will be used to finance the acquisition of Henry.
Upon closing of the transaction, ASP Henry Merger Sub will be merged into HNC Holdings, Inc., the parent holding company of Henry, and all existing ratings assigned to Henry will be withdrawn.
The outlook is stable.
Moody’s said the B2 corporate family rating reflects Henry’s leveraged capital structure following the buyout of the company by affiliates of American Securities. Balance sheet debt is increasing by almost 40%, resulting in adjusted pro forma leverage just over 5 times at the 2016 second quarter.
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