Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers H > Headlines for Hillman Group Inc. > News item |
Moody’s changes Hillman view to negative
Moody's Investors Service said it changed the outlook for Hillman Group Inc. to negative from stable.
The agency also affirmed the company's existing ratings, including the B3 corporate family rating and B3-PD probability of default rating.
Moody’s said the actions follow the company's announcement that it has entered into a definitive agreement to acquire Big Time Products, LLC for about $345 million.
The company will issue a $365 million term loan B add-on, the proceeds from which will be used to fund the acquisition, as well as associated transaction fees and expenses and cash to balance sheet.
"The negative outlook reflects Hillman's aggressive acquisition strategy, resulting in a significant increase in debt and interest burden," Vladimir Ronin, Moody's lead analyst for the company, said in a news release.
"While the acquisition of Big Time Products will add scale and broaden Hillman's product offering, it will also increase leverage and constrain the company's free cash flow over the next year, which will be limited by the significant interest burden along with ongoing elevated capital expenditures.”
© 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.