Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers C > Headlines for Contech Construction Products Inc. > News item |
Moody's rates Contech loans B1
Moody's Investors Service said it assigned a B1 corporate family rating to Contech Construction Products Inc. and B1 ratings to the company's $100 million senior secured revolver due 2012 and $245 million senior secured term loan B due 2013.
The outlook is stable.
The new credit facilities, along with a $225 million senior subordinated mezzanine debt and $408 million equity contribution, will be used to fund the acquisition of Contech by Apax Partners for $1.031 billion, or 9x pro forma last 12 months ended December 2005 EBITDA.
Moody's said the ratings reflect the company's high leverage ratios, weak free cash flow generation relative to debt level and the company's exposure to the slowing residential construction market, from which one third of its revenues are derived.
The ratings benefit from the company's continuing strong operating performance as reflected by increasing sales and effective cost management, leading market position and the expectation for continued robust demand in most of the company's end markets, the agency 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.