Moody’s assigns Therma, credit facilities B2

Moody’s Investors Service said it assigned first-time ratings for Refficiency Holdings, LLC (Therma Holdings), including a B2 corporate family rating and B2-PD probability of default rating. Moody’s also assigned B2 ratings to the company’s proposed $65 million senior secured first-lien revolving credit facility, $370 million senior secured first-lien term loan and $75 million senior secured first-lien delayed-draw term loan.

“The B2 CFR reflects Therma’s high adjusted financial leverage of 7.6x pro forma for the transaction at LTM Sept. 30, 2020, including Moody’s standard adjustment for the company’s multi-employer pension plan (MEPP),” the agency said in a press release.

The loan proceeds and a $418 million equity contribution will be used to finance Therma’s acquisition by the Blackstone Group, LP.

The outlook is stable. The outlook reflects the view Therma will grow organically and through acquisitions while lowering financial leverage through EBITDA growth and maintaining good liquidity, Moody’s said.

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