S&P rates Duravant loans B-, CCC+

S&P said it gave Engineered Machinery Holdings Inc.’s (Duravant) incremental $570 million first-lien term loan B- and 3 recovery ratings and assigned CCC+ and 6 recovery ratings to its incremental $175 million second-lien term loan.

The agency also affirmed the B- ratings on Duravant and its first-lien term loans and raised the second-lien term loan to CCC+ from CCC.

Duravant agreed to acquire Foodmate and will use the loan proceeds to help pay for it.

“The acquisition nearly doubles the company's debt load, but we expect credit metrics to remain manageable. Foodmate represents the thirteenth transaction Duravant has made under the majority ownership of Warburg Pincus since 2017. Over that horizon, we believe Duravant has demonstrated a solid track record integrating acquisitions,” S&P said in a press release.

The outlook is stable.

© 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.