Moody's gives Euramax notes Caa1

Moody's Investors Service said it affirmed the ratings of Euramax International, Inc. (B2 corporate family rating) and assigned a Caa1 rating to its proposed $315 million guaranteed senior subordinated notes due 2013.

The outlook is stable.

Affirmed ratings include the $332 million guaranteed first lien senior secured tranche B term loan due 2012 at B2 and $190 million guaranteed second lien senior secured term loan due 2012 at Caa1.

In 2005, Moody's said it anticipates that Euramax will now generate free cash flow of around $35 million, reflecting higher capital expenditures to support expansion of the company's distribution network and new product introductions as well as a partial year of higher interest expense.

The stable outlook reflects Moody's expectation that Euramax will continue to generate positive free cash flow despite higher pro forma cash interest expense and the company's ratings could come under pressure should a decline in operating performance or margin pressure result in leverage increasing beyond 7 times, the agency added.

© 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.