Federal-Mogul Holdings LLC#s Proposed Senior Secured Euro Notes Rated #B-# (Recovery Rating: #4#)

Stocks and Financial Services Press Releases Monday March 20, 2017 17:42
NEW YORK--20 Mar--S&P Global Ratings

NEW YORK (S&P Global Ratings) March 20, 2017--S&P Global Ratings today assigned its 'B-' issue-level rating and '4' recovery rating to Michigan-based Federal-Mogul Holdings LLC's proposed €715 million senior secured notes. The notes will be issued in two tranches, with one tranche of fixed-rate notes due 2022 and one tranche of floating-rate notes due 2024. The '4' recovery rating indicates our expectation for average (30%-50%; rounded estimate: 35%) recovery for secured lenders in the event of a payment default.

The company plans to use the proceeds from the bond offering to fully repay its tranche B term loan due 2018 and repay about $70 million of borrowings under its unrated asset-based revolving credit facility.
The proposed notes will rank pari passu in right of payment with all of Federal Mogul's existing and future senior indebtedness and will have access to the same collateral as the company's term loan facility.

All of our other ratings on Federal Mogul, including our 'B-' corporate credit rating, remain unchanged. We expect that the company's gross margins will remain stable at 20% or better and anticipate that its free operating cash flow will stay positive in 2017.


Latest Press Release

mai welcomes engineering contractor Thai Enger Holding on October 24

Market for Alternative Investment (mai) will list Thai Enger Holding pcl, a holding company that invests in a core company operating as civil engineering contractor, on October 24 under the ticker symbol "TIGER". The company has a market capitalization...

Photo Release: KBank celebrates the successful launch of sustainability bonds

Recently, at KBank Head Office, Ms. Kattiya Indaravijaya, KBank President, Dr. Adit Laixuthai (second from right), KBank Senior Executive Vice President, Mr. Joris Dierckx (third from left), Regional Head for Southeast Asia, CEO for BNP Paribas Singapore...

Photo Release: WHA Group Congratulates K.W. Metal Work on 1st Trading Day

Mr. Vivat Jiratikarnsakul (2nd left), Chief Operating Officer – Industrial and International; and Mr. Apisak Kamwan (far left), Assistant Director, Industrial Land Customer Development, WHA Industrial Development PLC, congratulates Mr. Ekapan...

Delta Thailand Video Campaign Envisions Change for a Better Tomorrow

Delta Electronics (Thailand) PCL. launched a video campaign that envisions change for a better tomorrow. Every day, Delta leverages on its energy-efficient solutions to transform the lives of users because it believes - life gets better by change. The...

Business operators urged to brace for Thai transfer pricing law, tax and legal changes in digital economy

Businesses are steadily moving towards more diverse online and offline platforms. MNCs are now emerging from survival mode and focussing once more on growth and opportunities. This drives massive opportunities and also poses challenges for companies when...

Related Topics