Moody's rates Audio Visual loans B1, Caa1

Moody's Investor Service said it assigned a B2 corporate family rating to Audio Visual Services Group, Inc., doing business as PSAV Presentation Services.

Concurrently, the agency said it assigned a B1 rating to AVSG's proposed first-lien credit facility and assigned a Caa1 rating to a new second-lien term loan. The outlook is stable.

Proceeds from the term loans will be used to fund AVSG's $270 million acquisition of competitor Swank Holdings, Inc., to refinance AVSG's existing debt and to pay fees and expenses.

The agency said the B2 corporate family rating reflects pro forma financial leverage of approximately 5.5 times at June 30, which is before consideration of planned merger-related cost synergies and based on Moody's standard adjustments.

Moody's said it expects financial leverage to fall below 5 times by the end of 2012 from organic revenue and earnings growth, driven by strong demand for business travel.

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