Moody's snips TriMark

Moody's Investors Service said it downgraded TMK Hawk Parent, Corp.'s (TriMark) corporate family rating to Caa3 from Caa2, probability of default rating to Ca-PD from Caa2-PD, and the rating of the tranche B second-out term loan rating to Caa3 from Caa2. At the same time, Moody's affirmed the company's tranche A first-out term loan rating at B3 and the senior secured second-lien term loan rating at C.

“The downgrades of the CFR and PDR reflect that TriMark's high financial leverage and negative free cash flow will make it challenging to refinance the 2024 term loan maturities at a manageable cash interest cost without impairing part of the debt structure. Although TriMark's revenue and earnings are recovering as a result of improving demand from certain end markets, including restaurant chains, Moody's expects debt to EBITDA to remain above 10x in 2023 even with solid revenue growth and meaningful earnings improvement,” the agency said in a statement.

Citing higher capital spending and working capital, Moody’s said it projects TriMark’s free cash flow in 2023 to be negative $30 million.

The outlook remains negative.

© 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.