S&P puts Airxcel on negative watch

Standard & Poor's said it placed its ratings on Airxcel Inc., including its B corporate credit rating and CCC+ senior subordinated notes rating, on CreditWatch with negative implications.

The CreditWatch placement follows the company's July 22 announcement that Bruckmann, Rosser, Sherrill & Co. will acquire Airxcel for $146 million less debt and certain other expenses.

S&P said the rating action reflects S&P's expectations that the company's financial leverage will likely be more aggressive, and liquidity and cash flow will be further constrained. In connection with the acquisition, Airxcel's senior subordinated notes due 2007 will be repurchased or redeemed.

The transaction is expected to close by the end of August, at which time all ratings will be withdrawn at the company's request.

© 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.