First State Investments issues debt to finance Patriot Rail and Ports acquisition from Steel River Infrastructure Partners.

The acquisition will be financed with a USD 325 million first-lien credit facility comprising a USD 40 million revolving credit facility due 2024 and a USd 285 million first-lien term loan due 2026, and an equity contribution from First State.

Moody's Investors Service (Moody's) has assigned 'B-' issuer credit rating to Patriot. At the same time, they assigned 'B' issue-level rating and '2' recovery rating to the proposed credit facility.The rating outlook is stable.

The ratings could be upgraded if the company demonstrates a prudent execution of its acquisition strategy, operating margins are consistently in excess of 20% (calculated excluding amortization), debt/EBITDA remains below 4.5 times and if free cash flow increases solidly.