Moody's cuts Road Infrastructure, rates loans B1 & Caa1

Moody's Investors Service said it downgraded Road Infrastructure Investment, LLC's corporate family rating to B2 from B1 following the company's announced financing proposal.

At the same time, the agency assigned B1 ratings to Road Infrastructure's revolving credit facility due 2019 and senior secured first-lien term loan due 2021, and a Caa1 rating to its second-lien term loan due 2021.

The outlook is stable.

The proposed debt financings, which will raise balance sheet debt by $184 million, will partially finance the $84 million acquisition of Eberle Design, Inc., fund a $159 million dividend to Road Infrastructure's equity sponsor and be used to repay $376 million of existing debt.

Moody's said the downgrade the corporate family rating reflects the increase in leverage to 7.1x (pro forma debt to EBITDA as of September 2013), which is substantially higher than its existing leverage of 5.4x and weakly places the company in the B2 rating category.

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