Moody’s rates Circor debt B1

Moody's Investors Service said it assigned Circor International, Inc. a B2 corporate family rating, B2-PD probability of default rating, B1 senior secured ratings and an SGL-3 speculative grade liquidity rating.

The outlook is stable.

Circor plans to raise $935 million of secured debt financing – a $150 million first-lien revolving credit facility and a $785 million first-lien term loan – to help fund the purchase of Colfax Corp.’s Fluid Handling business for $855 million and to repay existing Circor debt. The purchase price includes Circor common stock issued to Colfax for $163 million and $150 million of assumed net pension liabilities.

Moody’s said the ratings reflect Circor’s favorable niche market focus within severe flow control applications, diverse and highly reputable customer base, increasingly variable cost structure and asset-light business model that have helped maintain margins and free cash flow despite the multi-year negative trend in revenues.

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