S&P: Milacron on developing watch

Standard & Poor's said that its CCC corporate credit and senior secured bank loan rating and its other ratings on Milacron Inc. remain on CreditWatch with developing implications where they were placed Feb. 12.

The company announced Monday that its receivables purchase agreement and the liquidity facility related to that program, which were due to terminate Feb. 27, 2004, have been extended two weeks to March 12. Under the amended agreement, the company can sell up to $30 million of receivables. The company continues to discuss financing alternatives with existing and potential new lenders and investors to meet mid-March maturities for which it does not have sufficient cash.

As S&P has indicated previously, ratings would likely be lowered further to D, if the various mid-March maturities including the $115 million in principal amount of the company's senior notes and debt under its revolving credit facility are not paid or if actions to reduce debt involve exchanges that S&P considers a constructive default.

Should Milacron be successful in meeting debt maturities without impairing creditors, while maintaining adequate liquidity, ratings could be raised modestly.

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