S&P affirms True Temper Sports

Standard & Poor's said it affirmed True Temper Sports Inc.'s B corporate credit and senior secured credit facility ratings and CCC+ subordinated debt rating and removed the ratings from CreditWatch with negative implications. The outlook is negative.

The ratings were placed on CreditWatch on March 14 following the company's announcement that it planned to amend its senior secured credit facility, which would allow it to borrow an additional $15 million under its bank facility to pursue future acquisition opportunities. S&P said it expects that the incremental debt on the bank facility will be used to pursue acquisitions that will not weaken the company's credit measures on a pro forma basis and that the company will continue to apply free cash flow towards debt reduction.

S&P said the ratings on the company reflect its narrow business focus, leveraged financial profile and the discretionary nature of golf equipment sales.

Somewhat mitigating these factors are the company's leading market position in steel golf club shafts and its low-cost manufacturing capabilities, the agency said.

Total lease-adjusted debt to EBITDA improved to about 6.3x for the fiscal year ended Dec. 31 from about 8.3x one year earlier.

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