Moody's assigns B3 to CentroMotion

Moody's Investors Service said it assigned first time ratings to Engineered Components & Systems LLC (CentroMotion) including a B3 corporate family rating and a B3-PD probability of default rating. Concurrently, Moody's assigned a B3 rating to the company's expected $545 million senior secured credit facility, comprised of a $420 million first-lien term loan and a $125 million delayed-draw first-lien term loan.

Term loan proceeds will be used to fund the acquisition of Carlisle Brake & Friction and to refinance the existing CentroMotion debt.

“CentroMotion's B3 CFR reflects the company's modest scale, high adjusted debt-to-EBITDA (leverage) and execution risk associated with the CBF acquisition. CBF will be carved-out from a publicly traded company, Carlisle Companies Incorporated, (Baa2 stable),” Moody’s said in a press release.

The agency forecasts the pro forma leverage to be 6.1x as of December 2020. “New customer wins and macroeconomic tailwinds, combined with cost efficiency gains will drive leverage below 5x in 2021,” the agency said.

The outlook is stable.

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