Moody’s: Duravant loans B1

Moody’s Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Fischbein LLC, which does business as Duravant.

Moody’s also assigned B1 ratings to the company’s $25 million senior secured revolver and $276 million senior secured first-lien term loan, along with a Caa1 rating to its $50 million senior secured second-lien term loan.

The proceeds from its first- and second-lien term loans will be used to fund the recently completed acquisition of Mespack, refinance existing debt and pay fees and expenses, Moody’s said.

The outlook is stable.

Duravant is weakly positioned within the B2 rating category as a result of its modest scale characteristics, as well as its exposure to cyclical downturns and elevated financial risk, the agency said.

The ratings also reflects the company’s limited operating history at its current size, given that roughly a third of pro forma 2015 EBITDA is attributable to operating assets acquired within the last 12 months, Moody’s said.

The ratings also consider the company’s long-standing customer relationships, significant proportion of aftermarket revenue and modest capital requirements that support profitability, free cash flow and de-levering capacity, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.