Moody’s rates Fort Dearborn B3, loans B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Fort Dearborn Holding Co., Inc.

The agency also assigned B2 ratings to the $75 million senior secured revolver and $455 million first-lien senior secured term loan and a Caa2 rating to the $170 million second-lien term loan.

Proceeds, along with an equity contribution, were used to fund the estimated $830 million acquisition of Fort Dearborn by funds affiliated with Advent International from KRG Capital.

The outlook is stable.

"The B3 rating reflects high leverage following the acquisition of Fort Dearborn by Advent and Moody's expectations that the company will continue to pursue an acquisition-driven growth strategy given low organic growth in its core cut and stack label product offering," Moody's analyst Anastasija Johnson said in a news release.

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