S&P rates Pro Mach facilities B-

S&P said it affirmed its ratings on Pro Mach Group Inc., including the B- corporate credit rating, and affirmed all other ratings on the company.

The outlook is stable.

At the same time, the agency assigned its B- issue-level rating and 3 recovery rating to the company's proposed first-lien credit facilities, which comprise of a $100 million revolver due 2023 and a $760 million first-lien term loan due 2025.

The 3 recovery rating reflects an expectation for meaningful (50%-70%; rounded estimate 50%) recovery in a payment default scenario.

Leonard Green & Partners is buying Pro Mach in a leveraged buyout. The proposed sale will include about $200 million of incremental debt.

“Pro forma for the transaction, adjusted leverage will be high at over 10x but gradually improving to below 10x in about a year,” the agency said in a news release.

“Still, we continue to expect positive free cash flow of at least $30 million annually for the next few years, adequate liquidity, improved operating trends, modest margin improvement, modest debt reduction and improved cash flows.”

© 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.