Moody's assigns Watlow, loans B2

Moody's Investors Service said it assigned Watlow Electric Manufacturing Co. a B2 corporate family rating and a B2-PD probability of default rating. Concurrently, the agency assigned a B2 rating to Watlow’s proposed $50 million senior secured revolving credit facility and $515 million senior secured first-lien term loan.

“Watlow's B2 CFR reflects the company's moderate scale with revenues of less than $500 million, high financial leverage, and exposure to cyclical end-markets,” Moody’s said in a press release.

Term loan proceeds, along with a significant cash and rollover equity contribution, will be used to fund the acquisition of a majority stake in Watlow by Tinicum Inc. The outlook is stable. The outlook reflects the forecast that Watlow's profitability will improve in 2021 as it continues benefiting from its restructuring activities and increasing end-market demand, Moody’s said.

© 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.