Moody's assigns Windsor B1, loans B2

Moody's Investors Service said it assigned a B1 corporate family rating and a B1-PD probability of default rating to Windsor Holdings III, LLC. The agency also gave B2 ratings to the senior secured credit facilities. The outlook is stable.

“The B1 corporate family rating of Windsor Holdings III, LLC (Univar Solutions Inc.) reflects nearly doubling of balance sheet debt as a result of the leveraged buyout by Apollo Global Management and a wholly owned subsidiary of Abu Dhabi Investment Authority and the resultant weakening of credit metrics,” Moody’s said in a press release.

Additionally, Moody’s expects the deal to elevate the company’s financial risk of the business and forecasts Moody's adjusted leverage to remain around 5x in 2024.

The proceeds will be used to partially fund the acquisition of Univar by Apollo Global Management, Inc. Shareholders approved the deal on Tuesday, and it is subject to regulatory approvals. Once the transaction closes and Univar's debt is repaid, Moody's will withdraw the ratings assigned to Univar.

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