Fitch rates Timken loan BBB

Fitch Ratings said it assigned a BBB rating to Timken Co.'s $350 million term loan maturing on Sept. 11, 2023.

The proceeds from the issuance will be used to finance a portion of the purchase of Rollon SpA.

Timken's long-term issuer default rating, senior unsecured bank credit facility and senior unsecured notes are rated BBB.

The outlook is stable.

“The ratings reflect the benefit to Timken's business profile from the acquisitions of Rollon Group and Cone Drive, and the expectation for higher financial leverage over the near term,” Fitch said in a news release.

“Rollon, with revenues of around $140 million, makes linear guides, telescopic rails and linear actuators. Cone, with revenues of $100 million, makes precision drives used in a variety of industries.

“The acquisition of these businesses will expand and provide additional diversity to Timken's portfolio and further extend its business beyond tapered roller bearings.”

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