Moody's rates EnPro notes B1

Moody's Investors Service said it assigned a B1 (LGD 5) rating to EnPro Industries, Inc.'s new senior unsecured notes due 2026.

The issuance does not impact other ratings of EnPro, including its Ba3 corporate family rating.

The outlook is stable.

The proposed notes issuance is leverage neutral given that the company will be using the net proceeds of the $350 million notes issuance, together with borrowings under its revolving credit facility, to fund the redemption of its existing $450 million senior notes due 2022, Moody's said.

Pro forma for the transaction, the company's debt-to-EBITDA will be unchanged at 2.7x, the agency said.

The composition of the company's debt structure has changed with the replacement of longer-term permanent debt with a greater proportion of pre-payable revolver borrowings, which is a positive development, Moody's explained.

In addition, the company's nearest notes maturity will be extended to 2026 from 2022, the agency said.

The ratings also consider EnPro's good scale, brand strength and end-market diversity ranging from heavy-duty trucking and general industrial to semiconductors, energy and power generation, Moody's said.

The ratings also favorably consider EnPro's geographic diversity with slightly more than 40% of revenues generated abroad, the agency said.

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