Moody’s gives Altra Industrial loans Ba2, notes B2

Moody's Investors Service said it assigned a Ba3 corporate family rating and Ba3-PD probability of default rating to Altra Industrial Motion Corp.

The agency also assigned a Ba2 rating to the company's proposed first-lien senior secured bank credit facilities, comprised of a $300 million revolving credit facility and $1.34 billion term loan.

Moody’s also assigned a B2 rating to the proposed $400 million senior unsecured notes.

The agency assigned a speculative grade liquidity rating of SGL-2, reflecting Altra's good liquidity.

The outlook is stable.

Proceeds from the new bank debt facilities and notes will be used to fund the $1.4 billion cash portion of the company's roughly $2.8 billion combination with four operating companies from Fortive Corp.'s Automation & Specialty platform business and to refinance about $249 million of existing Altra debt as well as transaction expenses.

“Altra's Ba3 corporate family rating reflects its pro forma combined revenue scale exceeding $1 billion, geographic, product and end-market diversity as well as favorable market position and strong brands for products ranging from gears and industrial clutches and brakes to mechanical and electronic precision motion control systems,” Moody’s said in a news release.

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