Moody's rates AmeriQual notes B1

Moody's Investors Service said it assigned a B1 rating to AmeriQual Group LLC's proposed senior secured notes, to be co-issued by AmeriQual and its 100%-owned subsidiary AmeriQual Finance Corp.

Proceeds from the proposed offering and from the acquisition by Ares Corporate Opportunities Fund LP of 50% of the equity interests of Ameriqual Group, LLC for $30.2 million will be used to finance a payment of $121.7 million to the equity holders of Ameriqual Group LLC and to repay debt of $22.8 million of Ameriqual Holding Inc. in a transaction valued at about $183 million.

Upon closing, Ares and AmeriQual Holding (along with certain members of management) will each own 50% of AmeriQual Group LLC.

In addition, Moody's assigned AmeriQual a senior implied rating of B1, a senior unsecured issuer rating of B2 and a Speculative Grade Liquidity rating of SGL-2. The outlook is stable.

Moody's said the ratings reflect AmeriQual's relatively high leverage resulting from the leveraged recapitalization of the company in which existing owners have received a significant cash distribution and Ares has acquired a 50% interest.

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