Moody’s rates Konecranes B1, rates new loan Ba2

Moody’s Investors Service said it assigned to a first-time corporate family rating of B1 to Konecranes plc, along with a probability of default rating of B1-PD.

Konecranes is the ultimate parent and will change its name to Konecranes Terex plc upon close of a merger with Terex Corp. in an all-stock transaction with a combined capitalization of about $5.9 billion.

Moody’s also said it assigned a Ba2 rating to the proposed senior secured credit facilities co-borrowed by Konecranes Finance Oy and Terex Corp.

The ratings affirmed include Terex’s corporate family rating at B1, probability of default rating at B1-PD and senior secured bank credit facilities rating at Ba1, as well as Terex International Financial Services Co.’s debt instrument ratings at Ba1.

Moody’s also said it downgraded Terex’s unsecured debt ratings to B3 from B2, reflecting the large level of senior debt in the proposed capital structure.

The outlook on all companies is stable.

As part of the merger transaction, the company is refinancing its existing debt facilities and issuing about $1.6 billion of equity, Moody’s said.

The ratings reflect the combined company’s improved competitive position, extended geographic footprint and the potential for synergies, the agency said.

© 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.