Moody’s rates Flynn, facilities

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Flynn Restaurant Group LP.

The agency also assigned B2 ratings to Flynn's proposed $60 million senior secured first-lien revolver and $400 million senior secured first-lien term loan, and a Caa2 rating to its proposed $100 million senior secured second-lien term loan.

The outlook is stable.

Proceeds from the proposed $400 million first-lien term loan and $100 million second-lien term loan will be used to refinance about $411 million of existing outstanding debt at the credit group, put cash of roughly $80 million to the balance sheet, and pay about $10 million in related transaction fees and expenses.

"Flynn's B3 CFR considers the company's high leverage as a result of the proposed financing, elevated capex requirements, and acquisitive nature of the company," Moody's assistant vice president, analyst Adam McLaren said in a news release.

The agency expects leverage on a pro-forma basis of near 7 times for the last 12-month period ended March 31, 18.

However, Moody’s said the ratings also consider and recognize the strength and awareness of the Taco Bell and Panera Bread brands, Flynn's adequate liquidity and the expectation that leverage will improve from levels following closing.

© 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.