Moody’s rates FullBloom B3, loans B2

Moody's Investors Service said it assigned first-time ratings to ASP Dream Acquisition Co LLC (FullBloom), including a B3 corporate family rating and B2 ratings on the company's expected first-lien senior secured bank credit facility, consisting of a $75 million revolving credit facility and a $385 million term loan. The revolver is expected to be undrawn at close.

“The B3 CFR broadly reflects FullBloom's high initial leverage, modest scale, limited history at the current revenue level, limited free cash flow and acquisition event risk. Moreover, the company is exposed to cost increases on fixed-price contracts, which are only priced annually. FullBloom also must attract and maintain a skilled work force including teachers that provide services to special needs children and underperforming students. These risks are offset to some degree by Moody's expectation of high single-digit percentage revenue growth and moderate free cash flow generation through 2023, primarily driven by steady federal funding of targeted programs,” the agency said in a press release.

The term loan, a $100 million unrated second-lien term loan and cash equity from new sponsor American Securities, will be used to fund the buyout of FullBloom, including the repayment of all its debt, distributing a dividend to outgoing shareholders and covering transaction fees.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.