Moody’s gives International Textile loans B1, B3

Moody's Investors Service said it assigned a B1 corporate family rating and B1-PD probability of default rating to International Textile Group, Inc.

Concurrently, the agency assigned a B1 rating to the company’s proposed $575 million first-lien senior secured term loan and a B3 rating to its proposed $135 million senior secured second-lien term loan.

The outlook is stable.

Debt proceeds will be used along with new sponsor equity fund the proposed acquisition of American & Efird Global Holdings, LLC, repay existing debt, and pay related fees and expenses.

Moody’s said the B1 corporate family rating favorably reflects the strategic benefits of the transaction, which combines a leading producer of denim, worsted wool, automotive safety and other industrial fabrics with a leading manufacturer and distributor of premium sewing threads.

The combined company will have a solid market position in the fragmented global textile and threads producing markets, and will benefit from larger combined scale, as well as more diverse product offering, end markets and geographical sales channels, the agency explained.

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