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Moody’s applies B2 to TGP loans
Moody's Investors Service said it assigned a B2 rating to TGP Holdings III LLC's $46 million add-on to its senior secured term loan and $40 million delayed-draw senior secured term loan, both of which are part of the first-lien credit facility.
The $301 million senior secured term loan is upsized from its existing $255 million.
The outlook is stable.
Proceeds from the term loans, along with a $48 million sponsor equity contribution, will be used to fund a $133 million performance earn-out distribution and pay transaction fees.
"The transaction will add about a half turn to leverage with pro forma debt/EBITDA around 7 times," Moody’s senior credit officer Kevin Cassidy said in a news release.
"However, we still expect leverage to approach 5.5 times by the end of 2018."
This will be accomplished through EBITDA growth and debt repayment with free cash flow, the agency explained.
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