Moody's rates Rexair loan B1

Moody's Investors Service said it assigned a B1 rating to Rexair Holdings, Inc.'s proposed $120 million first-lien senior secured credit facility and affirmed the B1 rating for the existing $15 million first-lien senior secured revolving credit facility.

The company's existing first-lien term loan is being increased by approximately $50 million, proceeds of which will be used to repay in full the existing $30 million second-lien term loan (rated B3 by Moody's) and to fund a shareholder distribution.

The outlook remains stable.

The ratings are supported by Rexair's consistently high operating margins, the global diversification of the company's sales and the modest leverage for the B1 rating category. Ratings also benefit from the low working capital risks inherent in Rexair's business model.

The ratings are constrained by the single product nature of the company and its limited distribution channel, Moody's said.

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