S&P ups Robertshaw, acts on loans

S&P said it raised its issuer rating for RobertShaw US Holding Corp. (Range Parent Inc.) to CCC- from SD, selective default. However, the agency downgraded the upsized $218 million first-out term loan to CCC+ from B- but upgraded its $382 million second-out, $73 million third-out, $23 million fourth-out, and $29 million fifth-out term loans to C from D.

“Despite short-term relief following a cash infusion, Robertshaw's capital structure remains unsustainable and liquidity profile weak. The Dec. 8 debt restructuring involving existing lenders and the company's sponsor provided about $44 million of proceeds (after debt repayment, accrued interest, prepayment premium and fees) to support working capital and help fund two quarterly principal and interest payments.

“However, Robertshaw's ability to increase sales and restore its profitability continues to be challenged by weak consumer demand and operating inefficiencies. For the 12 months ended Sept. 30, 2023, Robertshaw's revenue declined about 11% with negative S&P Global Ratings-adjusted EBITDA margins and a free operating cash flow (FOCF) deficit of about $60 million,” the agency said in a press release.

The outlook is negative.

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