S&P rates Federal-Mogul loan B, notes B-

Standard & Poor's said it assigned a B rating and 4 recovery rating to Federal-Mogul Corp.'s proposed $1.75 billion senior secured term loan due 2020.

The 4 recovery rating indicates 30% to 50% expected default recovery.

The agency also said it assigned a B- rating and 5 recovery rating to the company's proposed $750 million senior unsecured notes due 2021. The 5 recovery rating indicates 10% to 30% expected default recovery.

The net proceeds from the proposed term loan and notes, as well as proceeds from its recently announced equity rights offering, will be used to repay all of its existing debt, S&P said.

Upon completion of the proposed refinancing plan, the agency said it intends to revise the outlook to stable.

Additionally, the proposed transactions would lower debt balances somewhat and improve credit metrics slightly, S&P added.

© 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.