| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers M > Headlines for Madison IAQ LLC > News item |
S&P rates Madison IAQ B
S&P said it gave preliminary B ratings to Madison IAQ LLC and its proposed senior secured debt. The agency also assigned a preliminary CCC+ rating to its planned $885 million of senior unsecured notes due 2029.
The secured debt is expected to include a $1.925 billion first-lien term loan due 2028, a $600 million senior secured bond due 2028 and an undrawn $200 million senior secured credit facility due 2026.
Madison IAQ is issuing $3.4 billion of debt to fund its planned $3.6 billion acquisition of Melrose plc's Nortek Air indoor air quality business.
“We forecast adjusted net debt (including lease and postretirement adjustments, as well as our pro forma EBITDA assumptions) to be above 7x in 2021. That figure could drop meaningfully in 2022 but would remain high at over 5.5x in 2022, assuming EBITDA increases by more than 25% in the next 12-18 months. Funds from operations (FFO) to debt could approach 12% in the same scenario,” S&P said in a press release.
The outlook is stable.
© 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.