Moody's rates Cooper-Standard notes B2

Moody's Investors Service said it assigned prospective ratings to CSA Escrow Corp., a wholly owned indirect subsidiary of Cooper-Standard Automotive Inc. that was formed to implement the emergence financing for Cooper-Standard and is not part of the company's bankruptcy estate.

The ratings include a corporate family rating of provisional B1, probability of default rating of provisional B1 and senior unsecured notes rating of provisional B2.

The outlook is stable.

The proceeds of the senior unsecured notes, a common equity and preferred equity rights offering totaling $355 million, along with cash on hand, will be used to repay Cooper-Standard's debtor-in-possession facility, senior secured pre-petition claims, a portion of the pre-petition senior notes due in cash and other bankruptcy related claims and expenses.

Cooper-Standard's worldwide revenue growth will be challenged by its exposure to European auto sales, which is about 40% of revenues, Moody's said.

The company is anticipated to have an adequate liquidity profile following its emergence from bankruptcy, the agency 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.