Moody's assigns Technimark B3, loans B2

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Technimark Holdings LLC. Moody's also gave B2 ratings to the company's $75 million senior secured revolving credit facility expiring 2026 and $460 million senior secured first-lien term loan due 2028.

Technimark is also issuing a $170 million senior secured second-lien term loan and a $30 million delayed-draw senior secured second-lien term loan which will not be rated by Moody's.

“The assignment of the B3 corporate family rating reflects Moody's expectation that debt to LTM EBITDA will decline to about 6.1x by the end of 2022 from over 7.5x at March 31, 2021 pro forma for the proposed LBO financing. Moody's expects Technimark to benefit from higher margin new business and continued growth in the global economy. Moody's also expects free cash flow to debt to decline to 1.1% by the end of 2022 from 1.7% pro forma as capex and working capital increase to support new business,” the agency said in a press release.

Term loan proceeds will be used to finance the acquisition of Technimark by Oak Hill Capital Partners.

The outlook is stable. The outlook mirrors the view Technimark will commercialize new business as projected and improve credit metrics while maintaining adequate liquidity, Moody’s said.

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