S&P upgrades Autoparts

S&P Global Ratings said it raised its corporate credit rating on Autoparts Holdings Ltd. to B- from CCC+. The outlook is stable.

At the same time, S&P assigned a B- issue-level rating and 3 recovery rating to the company's proposed $245 million first-lien term loan due 2021 (FRAM Group Holdings Inc. is the borrower). The 3 recovery rating indicates an expectation for meaningful (50%-70%; upper half of the range) recovery of principal in the event of a payment default.

“The upgrade follows Autoparts' announcement that it will use the proceeds from the sale of its Prestone segment, new cash equity, and a new term loan to pay down its existing debt,” said S&P credit analyst David Binns in a news release. “In conjunction with this transaction, the company is also issuing a new $25 million asset-based lending (ABL) facility, which will be undrawn at the close of the transaction.”

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