Moody’s rates EquipmentShare.com B1

Moody’s Investors Service said it assigned EquipmentShare.com Inc. a B1 corporate family rating, a B1-PD probability of default rating, a Ba3 rating to its $3 billion asset-based revolving loan and a B3 rating to its $750 million of senior secured second-lien notes. The outlook is stable.

“EquipmentShare's ratings reflect its good scale, with 2022 revenue of $1.7 billion. It also incorporates Moody's expectation that the company will continue to experience rapid and largely organic topline growth with revenue exceeding $2.5 billion in 2023,” the agency said in a statement.

However, Moody’s noted EquipmentShare has high leverage with Moody's adjusted debt to EBITDA at 5.3 times at the end of 2022 and forecasts it will produce negative free cash flow for the next few years.

“EquipmentShare's $750 million of senior secured second-lien notes are rated B3, two notches below the company's B1 CFR. The notes are subordinated to the claims of the company's $3 billion senior secured ABL and $275 million of other equipment debt,” Moody’s said.

The proceeds will be used to repay certain debts including a privately placed term loan and a portion of outstanding ABL borrowings, and fees and expenses, and provide roughly $45 million of cash to the company.

© 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.