Moody’s rates Recess facilities B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Recess Holdings, Inc.

At the same time, the agency assigned a B2 rating to the company's $370 million first-lien term loan and $50 million delayed-draw first-lien term loan. It also assigned a Caa2 rating to the company's $145 million second-lien term loan.

Proceeds from the facilities will be used to fund the acquisition of Recess by private equity firm Court Square Capital Partners.

Recess expects the acquisition to close by Sept. 30.

Proceeds from the delayed-draw term loan will be used to fund future acquisitions.

The outlook is stable.

Moody’s said the B3 corporate family rating reflects the cyclical nature of Recess’ business, limited geographic diversity with sales concentrated in the U.S., and high financial leverage.

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