Moody’s gives LSF12, loans B2

Moody’s Investors Service said it gave first-time ratings to LSF12 Badger Bidco, LLC (CentroMotion) including a B2 corporate family rating and a B2-PD probability of default rating. Concurrently, Moody's assigned a B2 rating to the company's planned senior secured first-lien bank credit facilities, comprising a $100 million revolving credit facility and a $450 million term loan B. The outlook is stable.

Lone Star Funds is contributing $375 million of cash equity, which along with term loan proceeds and $75 million of rollover equity will be used to finance the purchase of CentroMotion. “Given the equity contribution, Moody's estimates the pro forma adjusted debt/EBITDA to be 4.1x at the end of March 2023,” the agency said in a press release.

However, Moody’s said it expects the adjusted debt/EBITDA to decline below 4x driven by steady demand and Lone Star’s planned cost cutting.

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