Moody’s rates Service Logic loan B2

Moody's Investors Service said it assigned a B2 rating to Service Logic Acquisition, Inc.'s $135 million senior secured first-lien revolving credit facility due 2027.

Service Logic's other ratings following the assignment of the new revolver and incremental term loan, including its B3 corporate family rating and the B2 rating on the company's outstanding first lien bank credit facilities including the term loan add-on, are unchanged, the agency said.

About $330 million in term loan proceeds and $38 million sponsor equity will be used to repay the company's higher-priced incremental term loan and add about $140 million cash to the balance sheet for future acquisitions. The company's $135 million revolver due 2027 will replace the $100 million facility due 2025.

"Service Logic's term loan add-on and sponsor equity provide liquidity for the company to execute its debt-funded acquisition strategy. While often increasing leverage, the company's acquisitions also improve scale and geographic diversity. We forecast debt to EBITDA to decline modestly in 2024 driven by increased profitability from market share gains," said Justin Remsen, a Moody's analyst, in a press release.

The outlook is unchanged at stable.

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