S&P rates Robertshaw loans B, CCC+

S&P said it assigned a B corporate credit rating to Robertshaw Holdings Sarl, the indirect parent of Robertshaw Controls Co.

In addition, the agency assigned a B issue-level rating and 3 recovery rating to financing subsidiary Robertshaw U.S. Holding Corp.'s proposed $440 million first-lien term loan due 2024. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery for lenders in the event of a payment default.

S&P also assigned a CCC+ issue-level rating and 6 recovery rating to the proposed $140 million second-lien term loan due 2025. The 6 recovery rating indicates an expectation for negligible (0%-10%; rounded estimate: 5%) recovery for lenders in the event of a payment default.

The ABL facility, which will be reduced to $50 million from $65 million in conjunction with this transaction, is unrated.

S&P said the ratings reflect Robertshaw Controls' relatively high debt leverage and dependence on cyclical housing starts and consumer spending levels, which influence the demand of the home appliance and commercial applications that Robertshaw's products serve.

© 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.