Moody's rates Olaplex, loans B1

Moody's Investors Service said it assigned first-time ratings to Olaplex Inc., including a B1 corporate family rating and a B1-PD probability of default rating. The agency also gave B1 ratings to the first-lien senior secured credit facility, consisting of a $150 million revolving credit facility due 2027 and a $675 million senior secured term loan due 2029. Moody's concurrently assigned a speculative grade liquidity rating of SGL-1.

"The B1 CFR reflects Olaplex's strong market position and growth prospects in hair care, tested intellectual property protection, and Moody's expectation that private equity sponsor Advent International will continue to reduce their ownership through secondary market transactions without adding leverage to the company," said Moody's analyst Dawei Ma, in a press release.

"Olaplex's ratings also reflect the company's strong credit metrics, including modest leverage, strong profitability and low capital expenditures, which supports considerable positive free cash flow generation," Ma added.

The outlook is stable.

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