Moody's rates Alliant Holdings notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to the $265 million of senior unsecured notes being issued by Alliant Holdings I, Inc. under Rule 144A.

Moody's affirmed Alliant's B3 corporate family rating as well as the B2 ratings on its senior secured credit facilities.

The outlook is stable.

Proceeds will be used to repay a $290 million senior unsecured bridge loan facility. The notes will form part of the financing for the acquisition of Alliant by the Blackstone Group in partnership with Alliant's management and employees.

According to Moody's, the ratings reflect Alliant's well-established position as a specialty broker and program manager, strong organic growth and operating margins, and successful integrations of several acquisitions over the past six years.

These strengths are tempered by the company's substantial financial leverage and modest interest coverage on a pro forma basis following the acquisition, with the adjusted debt-to-EBITDA ratio increasing to nearly 7 times, the agency said.

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