Announcement: Moody’s says Strategic Companions’ add-on time period mortgage has no affect on rankings
International Credit score Analysis – 10 Dec 2020
New York, December 10, 2020 — Moody’s Buyers Service (“Moody’s”) in the present day mentioned that Strategic Companions Acquisition Corp.’s (“SPAC”) $90 million add-on to its senior secured time period mortgage due 2023 has no affect on its rankings, together with its B2 company household score (“CFR”), B2-PD likelihood of default score (“PDR”), B2 rankings on its senior secured credit score amenities, and secure outlook. The corporate will use proceeds from the add-on, together with rollover administration fairness, to fund the acquisition of a medical uniform model, in addition to to pay associated charges and bills.
Whereas the transaction will improve SPAC’s debt and monetary leverage, the corporate is strongly positioned in its score because of continued stable working efficiency and comparatively stable credit score metrics. Lease adjusted debt to EBITDAR, will improve to round 4.2x from 3.8x. The conservative use of fairness as partial funding for the transaction is considered favorably by Moody’s. The transaction comes on the heels of one other small acquisition in September 2020. The acquisitions will add to SPAC’s scale, portfolio of manufacturers, and general channel combine. Synergies are significant, with development alternatives inside present SPAC clients within the US and internationally. Moody’s expects SPAC to keep up good liquidity and stable credit score metrics over the following 12-18 months, supported by continued demand for medical uniforms and scrubs, diagnostics and private protecting tools (“PPE”).
Headquartered in Chatsworth, California, Strategic Companions Acquisition Corp. (“SPAC”) is the guardian firm of Careismatic Manufacturers, Inc., which designs and distributes medical and faculty uniform attire and associated merchandise globally. The corporate operates utilizing varied logos together with Cherokee and Dickies. SPAC has been managed by New Mountain Capital since June 2016.
Please see www.moodys.com for any updates on modifications to the lead score analyst and to the Moody’s authorized entity that has issued the score.
This publication doesn’t announce a credit standing motion. For any credit score rankings referenced on this publication, please see the rankings tab on the issuer/entity web page on www.moodys.com for essentially the most up to date credit standing motion info and score historical past.
Michael M. Zuccaro Vice President - Senior Analyst Company Finance Group Moody's Buyers Service, Inc. 250 Greenwich Avenue New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Shopper Service: 1 212 553 1653 Margaret Taylor Affiliate Managing Director Company Finance Group JOURNALISTS: 1 212 553 0376 Shopper Service: 1 212 553 1653 Releasing Workplace: Moody's Buyers Service, Inc. 250 Greenwich Avenue New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Shopper Service: 1 212 553 1653
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