Moody's rates Riddell Bell loan B1, notes B3

Moody's Investors Service said it assigned a B1 senior implied rating to Riddell Bell Holdings Inc. and rated the company's proposed $160 million senior secured credit facilities B1 and $140 million senior subordinated notes due 2012 B3.

In addition, Moody's has assigned a speculative grade liquidity rating of SGL-3. The outlook is stable.

Transaction proceeds will fund the acquisition of Bell Sports and its combination with Riddell Sports.

Moody's said the long-term ratings recognize the high debt levels and limited free cash flow resulting from the acquisition, and therefore the limited flexibility that exists for unexpected operating challenges. Nonetheless, the ratings are supported by the company's strong brands and stable, leading market positions, and by credible plans to leverage the scale, product development capability, and operational expertise of the two businesses.

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