S&P puts MB Aerospace on positive watch

S&P said it placed MB Aerospace Holdings II Corp.’s ratings, including the CCC+ ratings on its senior secured loans, on CreditWatch with positive implications.

The positive watch reflects Barnes Group Inc.’s agreement to buy MB Aerospace for an enterprise value of about $740 million, the agency said. In its June 5 press release, Barnes said it plans to lower the company’s net leverage to below 3x within 12 months and 2.5x within 24 months following closing.

“Our CreditWatch placement reflects expected improvements in the scale, scope, and diversity of the combined business. In particular, optimizing operations and expanding content within high-margin business lines will drive margin growth and translate into strong free cash flow,” S&P said in a press release.

The agency said it aims to resolve the positive watch after the deal closes expected in the fourth quarter of 2023.

“Upon the close of the transaction, we will probably discontinue our ratings on MB Aerospace if all its debt appears likely to be repaid or transferred to Barnes Group,” S&P said.

© 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.