S&P: Thermon recovery to 3

Standard & Poor's said it revised the recovery rating upward to 3 from 4 on Thermon Industries Inc.'s 9½% second-lien secured notes.

The company recently announced its intention to redeem an additional 10% of the notes. This will reduce the outstanding amount to about $118 million from the original principal amount of $210 million, S&P said.

The agency said it expects the lower amount of outstanding debt to result in greater recovery for lenders in a payment default. The new 3 recovery rating indicates 50% to 70% expected recovery in a default.

The issue rating remains B+, the same as the corporate credit rating.

The ratings reflect an expectation that the company will benefit from the increasing global demand for energy, S&P said.

The agency also said it expects the company to maintain an operating margin of at least 20%.

© 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.