Moody's rates Poindexter add-on

Moody's Investors Service said it took the following rating actions in connection with J.B. Poindexter & Co. Inc.'s announcement that it will be issuing $30 million of incremental guaranteed senior unsecured notes, to be added to the company's existing $125 million indenture for its guaranteed senior unsecured notes.

The outlook remains stable.

Moody's confirmed the B1 rating of JB Poindexter's $155 million (increased from $125 million) of 8.75% guaranteed senior unsecured notes due March 2014, the B1 senior implied rating, B2 senior unsecured issuer rating, and SGL-2 speculative grade liquidity rating.

Moody's said JB Poindexter's management maintains confidence that the company will meet or exceed its base case financial plan and will begin to generate meaningful cash flow from operations over the near-to-intermediate term. The company's improved financial flexibility within the capital markets is also a positive rating factor.

However, while the $30 million incremental notes offering will further improve current available liquidity, it will also will cause a $2.6 million increase in annual cash interest expense, an increase in pro forma total gross debt/EBITDA leverage adjusted for off-balance sheet obligations to about 4.4x (from 3.7x), and weakened EBIT coverage of cash interest to about 1.8x (from 2.1x). Pro forma total net debt/EBITDA will be unaffected at about 3.7x.

© 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.