Moody’s raises Milacron, loan, notes

Moody's Investors Service said it upgraded Milacron Holdings Corp.'s corporate family rating to B2 from B3 and probability of default rating to B2-PD from B3-PD based on the anticipation that a significant amount of proceeds from the company's recent initial public offering will be used for secured debt reduction.

The agency also upgraded Milacron LLC's senior secured term loan to Ba3 from B2 as well as the senior unsecured notes to Caa1 from Caa2.

The two-notch upgrade of the term loan reflects a combination of the corporate family rating upgrade and the reduction in the mix of secured debt relative to loss-absorbing unsecured debt.

At the same time, a speculative grade liquidity rating of SGL-3 was assigned.

The outlook is stable.

Moody’s said the upgrade reflects the expected meaningful decrease in debt to EBITDA and cash interest expense as a result of the anticipated debt pay down, and the agency expectation that leverage will remain below 6 times over the next 12-18 months.

Milacron's June 2015 IPO netted about $263 million in total proceeds.

© 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.