Moody's assigns B3 to FleetPride loan

Moody's Investors Service said it assigned FleetPride, Inc.’s new senior secured first-lien term loan a B3 rating. All other ratings of FleetPride are unaffected, including the B3 corporate family rating, the B3-PD probability of default rating and the Caa2 rating on the company's second-lien term loan.

The company wants to extend the maturity of its outstanding first-lien term loan by 2.5 years to a five-year tenor with a new maturity date of September 2028 and raise an incremental $276 million creating a total pro forma facility of $870 million. The incremental loan proceeds will be used to repay asset-based lending revolver borrowings. The B3 rating on the existing first-lien term loan will be withdrawn at the close of the transaction.

“The proposed refinancing is leverage neutral and improves liquidity by restoring available revolver. However, expected reductions in leverage may be delayed due to the increase in the amount of longer-term debt in the capital structure,” Moody’s said in a press release.

The outlook is stable.

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