S&P rates TriMas loan BB-

Standard& Poor’s said it assigned a BB- rating and 3 recovery rating to TriMas Corp. subsidiary’s $250 million incremental term loan due 2018.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The BB- corporate credit rating on TriMas and BB- issue-level rating on its senior secured revolving credit facility and existing $175 million senior secured term loan due 2018 are unchanged following the company’s proposed $250 million incremental term loan.

The company will exercise the accordion feature in its credit facility to partly fund the acquisition of Allfast Fastening Systems Inc. for $360 million, along with the remaining funding from borrowings on the revolving credit facility.

S&P said it expected TriMas to be acquisitive and while this is a somewhat larger debt-funded bolt-on acquisition, the agency believes this strategic acquisition further complements its leading position in critical aerospace fasteners.

© 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.