Moody's assigns B3 to Rising Tide

Moody's Investors Service said it assigned first time ratings to Rising Tide Holdings, Inc., including a B3 corporate family rating and a B3-PD probability of default rating., Moody's also gave a B2 rating to Rising Tide's planned $385 million first-lien term loan and a Caa2 rating to the proposed $120 million second-lien term loan.

“The B3 CFR assignment reflects Rising Tide's high pro forma leverage post-transaction with funded debt/EBITDA of approximately 8.2x and Moody's lease adjusted debt/EBITDA of 6.7x for the LTM period April 3, 2021. However, leverage is expected to improve in 2021 from EBITDA growth. Record boat sales in 2020 should continue to provide tailwinds for Rising Tide over the near term as boat purchases are usually followed by an increased spend on boating aftermarket products,” the agency said in a press release.

The proceeds will be used to complete the acquisition of Rising Tide by L Catterton.

The outlook is stable.

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