Moody's changes Tecta view to positive, rates loan B2

Moody's Investors Service said it revised the outlook of Tecta America Corp. to positive from stable.

Moody's also affirmed Tecta's corporate family rating at B2 and its probability of default rating at B2-PD. At the same time, Moody's assigned a B2 rating to Tecta's proposed $200 million first-lien term loan and downgraded the company's existing first-lien term loan to B2 from B1.

The proceeds from the proposed first-lien facility will be used to repay Tecta's existing second-lien term loan, fund acquisitions, and pay transaction fees.

“Tecta's ratings affirmation and positive outlook reflect the company's rapid deleveraging and commitment to a moderate leverage profile. Since the company's 2021 acquisition of Empire and debt funded dividend, Tecta has reduced leverage by about 2x to mid 4x for the twelve months ending June 30, 2023,” Moody’s said in a news release.

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