Moody’s applies Ba3 to Ferro loans

Moody's Investors Service said it assigned Ba3 ratings to Ferro Corp.’s new term loans, as well as its upsized $500 million revolving credit facility.

Proceeds will be used to refinance the company's existing term loans and for future business acquisitions as well as general business purposes.

Ferro's existing Ba3 corporate family rating, Ba3-PD probability of default rating, SGL-2 and existing instrument ratings are unaffected by the proposed issuance.

“Ferro's proposed new term loan issuance will be net debt neutral at the close of the transaction and provide the company with excess cash to meet its $150 million spending plan in acquisitions in 2018,” Moody’s said in a news release.

“We expect most of the acquisitions will be bolt-on in nature with reasonable multiples, and the company's sound free cash flow generation indicate a strong potential for deleveraging.”

© 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.