S&P rates Vertiv loan B+

S&P said it assigned a B+ corporate credit rating to Cortes NP Acquisition Corp., which does business as Vertiv.

The outlook is stable.

The agency also said it assigned a B+ rating and 3 recovery rating to the company's proposed $2.285 billion first-lien term loan due in 2023, indicating 50% to 70% expected default recovery.

The proceeds and anticipated additional debt and equity will be used to purchase an 85% equity stake in the company from Emerson Electric Co., which will be owned by Platinum Equity, S&P explained.

Emerson Electric will retain the remaining 15% minority interest in the business, the agency said.

The ratings reflect the company's high pro forma leverage, which is somewhat offset by its good market position, moderate scale and well-established customer base, S&P said.

S&P said it expects the company’s adjusted total debt-to-EBITDA ratio will be about 5.6x pro forma for the transaction.

Operating performance in fiscal 2015 was challenged by reduced telecom spending in China, wage inflation and translational foreign-exchange effects, the agency added.

© 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.