Moody’s rates SouthernCarlson, loans

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Fastener Acquisition, Inc. (SouthernCarlson, Inc.), a national distributor of fastening and packaging materials, and related building materials predominately throughout the United States.

In related actions, the agency assigned a B2 rating to the proposed senior secured first-lien bank debt and Caa2 to its proposed senior secured second-lien term loan.

Proceeds from new debt will be used to refinance company's existing term loan (unrated), to distribute a dividend to affiliates of Kelso and Co., primary owner of SouthernCarlson, and to other investors, and to pay related fees and expenses.

The outlook is stable.

SouthernCarlson's new capital structure will consist of a $35 million senior secured revolving credit facility expiring in 2023, of which there will be no borrowings expected at closing, $225 million senior secured first-lien term loan maturing in 2025 and $85 million senior secured second-lien term loan maturing in 2026.

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