| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers E > Headlines for EmployBridge Holding Co. > News item |
Moody's rates EmployBridge B2, loan B3
Moody's Investors Service said it assigned to EmployBridge Holding Co. a B2 corporate family rating, a B2-PD probability of default rating and a B3 rating to its planned $725 million senior secured term loan B due 2028. The company also plans to secure an unrated $300 million senior secured asset-based lending revolver. The outlook is stable.
“EmployBridge's B2 CFR reflects Moody's expectations for high-single-digit revenue growth in 2021, improving profitability rates and debt to EBITDA to decline to below five times in 2022. The expected strong revenue growth, supported by the broad recovery in EmployBridge's supply chain centric customer base and the tight U.S. labor market, should drive the company's EBITDA to at least $150 million by 2022. Pro forma for the transaction, debt-to-EBITDA was 6.7 times as of LTM March 31, 2021,” the agency said in a press release.
The B3 rating on the term loan, a notch below the CFR, reflects both the PDR of B2-PD and a loss given default assessment of LGD4, reflecting its second-priority lien on the most liquid assets of the company and first-priority lien on all other property. The ABL will have a first-priority lien on the company’s most liquid assets, and is ranked ahead of all other debt in Moody's hierarchy of claims at default, the agency said.
The proceeds and equity from affiliates of Apollo Global Management, LLC will be used to purchase the company for about $1.1 billion and pay transaction-related fees and expenses. About $100 million in deferred FICA tax payments stemming from the Cares Act will be repaid at or before closing. Governance is a key consideration given the company's private equity ownership. The ratings assigned to EmployBridge, LLC will be withdrawn upon repayment of the debt.
© 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.