New York, June 10, 2016 -- Moody's Investors Service said that the recent $115 million proposed add-on to TMK Hawk Parent, Corp.'s ("TriMark") senior secured first lien term loan is credit negative, as it results in an increase in financial leverage without a concomitant increase in cash flow. More positively, the company will use a portion of the proceeds to repay revolver borrowings used initially to purchase US foodservice supplies distributor Adams-Burch, Inc. on June 3, 2016. TriMark will likely access the remaining funds through a delayed draw to finance additional acquisition activity over the next six months. While pro forma debt leverage will weaken as a result of the transaction, it remains in line with similarly-rated distributors, and liquidity will improve slightly with the increase in borrowing capacity under the revolver. Taking this into consideration, along with the strong and consistent organic growth over the last three years, the debt increase will not affect the company's ratings, including the B3 Corporate Family Rating and B3-PD Probability of Default Rating, as well as the B3 and Caa2 ratings on the first lien and second lien term loans, respectively.

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