Moody’s assigns Ports America, bond Ba2

Moody’s Investors Service said it assigned a Ba2 corporate family rating and a Ba2-PD probability of default rating to Ports America Holdings, LLC. In connection with the company’s planned debt offering, Moody’s also assigned a Ba2 rating to the planned $630 million of eight-year senior secured notes.

“The Ba2 rating on the notes captures that debt at the holding company is structurally subordinated to senior secured debt at Ports America Chesapeake LLC (Baa3 stable), which is a ring-fenced entity, and to senior secured debt at the JV Port Newark Container Terminal LLC (PNCT, Ba1 stable),” the agency said in a press release.

Proceeds and a $125 million 364-day bridge loan will be used to refinance Ports America Group’s outstanding $720 million term loan debt. The bridge loan will be repaid with the proceeds of asset sales, including the sale of Ports America Group’s stake in one of its terminals.

The outlook is stable.

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