Fitch rates Sequa facilities, notes B; loan CCC

Fitch Ratings said it assigned Sequa Corp. a B- long-term issuer default rating, B/RR3 long-term ratings to its new first-lien senior secured revolver, term loan and notes and a CCC/RR6 rating to its new second-lien senior secured term loan.

The outlook is stable.

Fitch said the ratings are based on its expectation that Sequa will complete its proposed recapitalization as planned, including the conversion of outstanding senior unsecured notes into preferred shares, which will not be considered debt under Fitch's “Criteria for Rating Non-Financial Corporates.”

“The recapitalization plan also includes the refinancing of the existing credit facilities and the injection of $190 million of new cash equity into the company. The recapitalization will push out debt maturities, providing the company time to focus on completing its restructuring plan, although significant risks remain,” the agency said in a news release.

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