Moody’s rates Forming Machining loans B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Forming Machining Industries Holdings, LLC.

The agency assigned a B2 rating to the proposed first-lien senior secured bank credit facilities, comprised of a $50 million revolving credit facility due 2023 and $245 million term loan due 2025, and assigned a Caa2 rating to the proposed $75 million second-lien term loan due 2026.

The outlook is stable.

Proceeds from the proposed facilities will be used to help finance the acquisition of the Atlas Group.

Moody’s said the corporate family rating reflects the company’s modest revenue scale, high financial leverage and acquisition integration risk stemming from the proposed combination of Atlas Group and Forming Machining that are currently operating as two stand-alone entities.

The meaningful amount of debt being incurred as part of the transaction and the amount and timing of realizing expected synergies is also a credit consideration, the agency noted.

© 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.