Moody's rates Tomkins Air loans B1, Caa1

Moody's Investors Service said it assigned B2 corporate family and probability of default ratings to QS0001 Corp., the borrower operating under the name Tomkins Air Distribution.

The agency said it also assigned B1/LGD3, 39% ratings to the planned $100 million first-lien revolving credit facility and $525 million first-lien term loan. Additionally, the agency assigned Caa1/LGD5, 86% ratings to the $135 million second-lien term loan.

The outlook is stable.

The company is being sold by Pinafore Holdings BV to CPP Investment Board for about $1.1 billion. CPP currently owns about 40% of Pinafore and will own 100% of Tomkins Air Distribution as a result of this transaction.

Moody's said the B2 rating is supported by the company's leading market share, solid geographic diversity within the United States and resilient cash flows.

The agency said the stable outlook is based on Moody's expectation for low single digit percent growth in the commercial real estate new construction and repair and remodeling sectors, as well as mid to high single digit percent growth in new residential construction over the next 12 to 18 months.

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