Moody's gives Columbus McKinnon facilities Ba2

Moody's Investors Service said it assigned a Ba2 rating to Columbus McKinnon Corp.’s (CMCO) proposed senior secured revolving credit facility maturing in 2026 and senior secured term loan due 2028.

Concurrently, the agency confirmed the company’s Ba3 corporate family rating and Ba3-PD probability of default rating. Moody's also confirmed all other debt instrument ratings of Columbus McKinnon. The company's speculative grade liquidity rating is unchanged at SGL-1, signifying very good liquidity.

Moody's also changed the outlook to stable from under review. These actions conclude the review for downgrade started on March 2, the agency said.

“The assigned Ba2 rating to the company's proposed senior secured bank facility, one notch higher than the Ba3 CFR, reflects the support provided by the company's junior unsecured liabilities including pension and leases. Borrowers under the facilities include CMCO, Columbus McKinnon EMEA GmbH and certain designated subsidiaries of CMCO,” Moody’ said.

Proceeds are expected to be used to refinance the company's debt, take out bridge financing that was used to acquire Dorner Manufacturing Corp. on April 7, for $485 million and pay related transaction fees and expenses.

“The stable outlook is based on Moody's expectation that the company will successfully integrate the Dorner acquisition and profitability will recover from pandemic related headwinds,” the agency said.

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