Moody's assigns RC Buyer B2

Moody's Investors Service said it assigned ratings to RC Buyer, Inc. (Rough Country), including a B2 corporate family rating and a B2-PD probability of default rating. Moody's also gave B1 ratings to the company's planned first-lien credit facilities, consisting of a $50 million revolver and a $555 million term loan, and a Caa1 rating to the proposed $205 million second-lien term loan.

“The ratings reflect Rough Country's moderate scale with favorable brand recognition, consistently high-profit margins, and good liquidity supported by strong free cash flow generation. Rough Country maintains a competitive position within the niche segment of truck and Jeep aftermarket accessories,” Moody’s said in a press release.

Term loan proceeds along with common equity will be used to finance a majority stake in Rough Country LLC by the private equity firm TSG Consumer Partners, LLC. Following the close of this transaction, outstanding debt at the currently rated entity Rough Country will be repaid and Moody's will withdraw all existing ratings for that entity.

The outlook is stable, reflecting the view financial leverage will improve to the mid-5x range in 2022, Moody’s said.

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