Moody's rates HP Pelzer notes B2

Moody's Investors Service said it assigned a provisional B2 corporate family rating to HP Pelzer Holding GmbH, which is part of the Adler Group, and a provisional B2 (LGD4, 52%) rating to its proposed €230 million worth of senior secured notes due 2021. The outlook is stable.

The proceeds will use to repay €86.2 million of existing debt, to repay a €52.6 million intercompany loan provided by the Adler Group and to acquire some of Adler Plastic's non-Italian automotive subsidiary, which HP Pelzer plans to incorporate, for €22.5 million. As part of the issuance, the company intends to repay €34.8 million of loans made to it by customers and suppliers during the financial crisis.

The agency said the provisional B2 corporate family rating reflects HP Pelzer's worldwide presence and market leadership in the supply of noise-reduction components to the automotive industry and its long-standing relationship with the larger original equipment manufacturers, which provide for a degree of revenues visibility.

However, the rating also incorporates the company's constrained negotiation power in comparison to a much larger and concentrated customer base, represented by big original equipment manufacturers, its exposure to the automotive industry's cyclicality and its need to remain innovative in a highly competitive segment, Moody’s said.

© 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.