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Moody's lowers Euramax
Moody's Investors Service said it downgraded Euramax International Inc.'s first-lien senior secured credit facility to B2 from B1 and its second-lien senior secured credit facility to Caa1 from B3.
In addition, Moody's has downgraded Euramax International, Inc.'s corporate family rating to B2 from B1.
The outlook is stable.
Moody's said this action is based on the company's plan to seek an amendment to its credit agreements that would permit the refinancing of the $190 million second-lien term loan and $110 million senior unsecured PIK notes with senior subordinated notes.
The ratings actions consider that Moody's essentially viewed the senior unsecured PIK notes as common equity that will now likely be refinanced with cash-pay debt. As a result (assuming the refinancing was completed), Moody's credit metrics would incorporate a higher pro forma debt balance of at least $750 million as opposed to the $640 million debt balance (amount excludes the senior unsecured PIK notes) that was factored into the B1 corporate family rating assigned in June.
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