Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers K > Headlines for K&F Industries > News item |
Moody's cuts K&F, rates loans B2, notes Caa1
Moody's Investors Service said it downgraded the senior implied rating of K&F Industries Inc. to B2 from B1 and the unsecured issuer rating to B3 from B2. Moody's also assigned ratings to the company's proposed senior secured credit facilities and senior subordinated notes.
More specifically, Moody's assigned a prospective B2 rating to the $50 million senior secured revolving credit facilities due 2010 and $430 million senior secured term loan B due 2012 and assigned a prospective Caa1 rating to the $365 million senior subordinated notes due 2014. The outlook is stable.
The purpose of the proposed facilities is to partially fund the acquisition of K&F by Aurora Capital Group for $1.06 billion in cash, including refinancing of existing debt. Aurora and certain investors will contribute about $315 million in equity (PIK preferred and common stock) for the purchase.
Moody's said the downgrade reflects Moody's view that this recapitalization will result in K&F operating with a much more aggressively leveraged capital structure than in the past. This will considerably reduce the company's financial flexibility and credit metrics, and leave it more vulnerable to any downturn in the aircraft sector or an increase in competitive pressures.
© 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.