Moody's gives NES Fircroft B1, bond B2

Moody’s Investors Service said it rated NES Fircroft BondCo AS’ planned $300 million backed senior secured sustainability-linked Nordic bond with a four-year maturity, expected to be placed by the end of August, B2. The agency also assigned the issuer a B1 corporate family rating and a B1-PD probability of default rating.

The B1 rating reflects the company’s niche market position, its blue-chip clients and high level of customer satisfaction; however, the company’s small size and heavy reliance on the oil & gas industry with 72% of net fee income delivered from the segment and use of invoice discounting facilities constrain the rating, Moody’s said.

NESF will use the proceeds to refinance the company's $262 million term loan B due 11 May 2023 and to repay in full the outstanding $17 million under its revolving credit facility. NES plans to replace its $72 million revolving credit facility maturing in March 2023 with a new super senior revolver of equal amount and maturity of 3.75 years.

The outlook is stable reflecting a forecast for a continuing upward trajectory for the next 18-24 months, Moody’s said.

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