Moody's rates AmWINS loans B2, B3

Moody's Investors Service said it assigned a B2 corporate family rating to AmWINS Group, Inc., B2 ratings to its proposed $50 million first-lien revolving credit facility and $285 million first-lien term loan and a B3 rating to its proposed $100 million second-lien term loan.

The outlook is stable.

The credit facilities are being arranged in connection with a proposed recapitalization of the company. The proceeds will be used to repay $173 million of existing debt; to fund a dividend to owners; to fund potential acquisitions, including the planned acquisition of American Equity Underwriters; to pay related fees and expenses; and for general corporate purposes.

The agency said the ratings reflect the issuer's strong position in the wholesale brokerage market, its diversified revenues and its record of healthy organic growth. The firm also benefits from broad ownership participation among core producers and managers.

These strengths are offset by the issuer's considerable financial leverage and modest fixed charge coverage, along with the general softening of rates in the property and casualty insurance market, Moody's said.

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