Moody's assigns REEF Global, loans B1

Moody’s Investors Service said it assigned ratings to REEF Global Midco LLC, including a B1 corporate family rating and a B1 rating to its planned senior secured first-lien credit facility due 2027. The outlook is stable.

The facility will include a $450 million senior secured term loan, a $100 million delayed-draw term loan available in two draws, and a $25 million revolving letter of credit.

“REEF's CFR incorporates the company's position as one the leading parking facility operators in North America. Benefiting from its geographic diversification and broad spectrum of end-users as margins of safety, REEF's operations have been rapidly recovering since the loosening of government-mandated mobility restrictions and temporary business closures in response to the Covid-19 outbreak,” the agency said in a press release.

However, REEF’s small scale and low profitability margins limit the rating, Moody’s added.

REEF will use the proceeds to repay its $375 million credit facility and for general corporate purposes.

The outlook reflects the expectation REEF will continue to stay profitable, producing stable and widening cash flows in addition to deleveraging its balance sheet on a debt to EBITDA basis, Moody’s said.

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