S&P affirms Altra Industrial

Standard & Poor's said it affirmed its ratings on Altra Industrial Motion, Inc., including its B corporate credit rating, following the $105 million add-on to the existing $165 million second-lien senior-secured notes.

The company intends to use the proceeds, along with a $10 million draw on the revolving credit facility and additional cash, to purchase TB Wood's Corp., the agency said, noting that the total debt following the acquisition is expected to be $370 million.

The outlook is stable.

According to S&P, the speculative-grade ratings on Altra reflect its vulnerable business risk profile and highly leveraged financial profile.

The agency noted that the ratings are constrained by the company's high indebtedness, limited financial flexibility and weak margins and the fragmented, cyclical and highly competitive nature of the industry.

© 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.