Moody's assigns ATS notes B2

Moody's Investors Service said it assigned a B2 rating to ATS Automation Tooling Systems Inc.'s proposed senior unsecured $300 million of notes due 2028.

“The notes, which are guaranteed by certain material subsidiaries, are rated two notches below the corporate family rating to reflect their junior position relative to the sizeable, priority-ranking secured revolver,” Moody’s said in a press release.

Proceeds will be used to refinance ATS' senior unsecured $250 million of notes due 2023 and for general corporate purposes, enhancing ATS's maturity profile. Post transaction, ATS's pro forma leverage for the 12 months ended September will increase by 0.3x to 2.6x.

ATS's Ba3 corporate family rating, Ba3-PD probability of default rating and SGL-2 speculative grade liquidity rating remain unchanged.

The outlook remains stable.

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