Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers M > Headlines for Michael Baker International, LLC > News item |
Moody’s rates Michael Baker loan B2, view positive
Moody's Investors Service said it changed the outlook of Michael Baker Holdings LLC to positive from stable and affirmed the corporate family rating of B3.
The Caa2 rating on the $150 million notes due 2019 was also affirmed.
Concurrently, the agency assigned a B2 rating to a planned $450 million seven-year senior secured term loan of Michael Baker International, LLC.
Proceeds will redeem Michael Baker International’s existing $350 million notes due 2018, repay revolver borrowing and other miscellaneous borrowings.
Moody’s said the outlook change reflects the margin improvement within the business that should continue within the strengthening demand environment. In 2016, the company's EBITDA margin grew by 55 basis points to 9.5% on 7% revenue growth, evidence that operational initiatives to integrate and streamline the numerous businesses Michael Baker acquired over the last several years are progressing well.
The agency believes that EBITDA margin may expand by another 50 bps over the next 12 to 18 months.
© 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.