Moody's assigns B2 to RelaDyne add-on

Moody's Investors Service said it assigned a B2 rating to RelaDyne Inc.’s (AIP RD Buyer Corp.) planned $200 million non-fungible incremental senior secured term loan.

The B2 corporate family rating, B2-PD probability of default rating and B2 rating on the outstanding senior secured first-lien term loan remain unchanged.

The loan proceeds will be used to fund the two strategic tuck-in acquisitions, reduce ABL borrowings and pay fees and expenses.

"The incremental debt on the balance sheet moderately increases leverage on a pro forma basis, though it is more than offset by strategic acquisitions that add scale and enhance the company's geographic footprint," said Domenick R. Fumai, a Moody’s vice president and lead analyst for RelaDyne, in a press release.

The outlook is stable.

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