Moody's revises Tower Automotive view to positive

Moody's Investors Service said it revised Tower Automotive Holdings USA, LLC's outlook to positive following news that Tower International, Inc. will sell all of its European operations to Financière SNOP Dunois SA, a privately owned French automotive supplier.

Moody's also said it affirmed the company's corporate family rating at B1 and probability of default rating at B1-PD, along with its senior secured credit term loan at B1.

The speculative grade liquidity rating also was affirmed at SGL-2.

The anticipated $298 million sales price represents an enterprise multiple of 5.4x adjusted EBITDA, the agency said.

The transaction is expected to close during the first quarter of 2019, Moody's said.

The positive outlook reflects the company's strong credit metrics within the assigned rating category and the expected further debt pay down with some of the proceeds from the sale of the European assets, the agency said.

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