S&P: Milacron watch developing

Standard & Poor's said that its CCC corporate credit and its other ratings on Milacron Inc. remain on CreditWatch, where they were placed Feb. 12, but that the implications were revised to developing from negative. S&P rates the company's senior unsecured debt CCC-.

S&P said the revision stems from the company's announcement late on Friday that it had obtained refinancing to repay bonds and bank debt that were due on March 15. Following completion of the various announced transactions and repayment of the maturing debt, Milacron's cash balance is expected to be about $60 million.

S&P said that while the company successfully refinanced the March 15, 2004, maturities, it still faces a €115 million 7.625% debt maturity in April 2005, an approximately one-year maturity of a new $140 million bank deal, and the new $100 million convertible debt securities containing various near-term conditions, some of which require shareholder approval by July 29, 2004.

If various conditions are met the convertible debt securities will be converted into preferred stock, which in turn will convert to common equity within seven years.

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