Moody's assigns B3 to FR Flow loan

Moody's Investors Service said it assigned a B3 rating to FR Flow Control Luxco 1 Sarl's planned senior secured term loan. Flow Control's other ratings, including the B3 senior secured debt rating, the B3 corporate family rating, the B3-PD probability of default rating and and positive outlook are unaffected.

Proceeds from the $75 million add-on term loan will be used mostly to fund the acquisition of Termomeccanica Pompe.

“The transaction is credit negative because it will increase Flow Control's funded debt (by roughly 45%) and leverage, with Moody's adjusted debt to EBITDA approaching 4.5x pro forma for the transaction,” Moody’s said in a press release.

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