Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers R > Headlines for Radio Systems Corp. > News item |
Moody's eyes Radio Systems for downgrade
Moody's Investors Service said it placed Radio Systems Corp.'s ratings under review for downgrade. The B1 rating on the company's $300 million senior secured first-lien term loan due 2024 is unaffected, the agency said.
The decision to review the company follows an announcement that funds managed by Clayton, Dubilier & Rice agreed to acquire Radio Systems, Moody’s said.
Citing news accounts, Moody’s said the financing might consist of a $100 million asset-based revolver and a $625 million term loan.
“This would represent a significant increase in debt from approximately $340 million at present. Radio Systems' debt/EBITDA financial leverage thus stands to rise meaningfully to approximately 5.8x with an accompanying increase in cash interest, which factors will create incremental credit risk. The transaction is expected to close around June 2020,” the agency said in a press release.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.