Moody’s assigns B2 to PMHC II

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to PMHC II, Inc.

In addition, the agency assigned a B2 rating to ASP Prince Merger Sub, Inc.'s proposed $85 million senior secured revolving credit facility and $505 million senior secured first-lien term loan, and a Caa1 rating to the proposed $160 million senior secured second-lien term loan.

Term loan proceeds will be used to fund a significant portion of the acquisition of PMHC II by American Securities.

The outlook is stable.

The existing ratings at Prince International Corp. will be withdrawn when the acquisition by American Securities is completed.

"PHMC II's leverage ratio of about 6.0x will be somewhat elevated for its B2 corporate family rating, but its ample interest coverage, strong profit margins and return on assets provide support to the rating. Its free cash flow generation should also give it the ability to reduce its leverage over the next 12-18 months," Michael Corelli, Moody's vice president, senior credit officer and lead analyst for PHMC II, said in a news release.

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