We have assigned preliminary issue-level and recovery ratings to metalworking fluids producer Houghton International Inc.'s proposed senior secured $50 million revolving credit facility and $315 million term loan B facility. Proceeds from the $315 million term loan B facility along with $2 million of cash on hand will be used to acquire the metalworking and rolling oil business from Royal Dutch Shell plc, refinance existing debt and pay for fees and expenses. Our recovery analysis incorporates a simulated default scenario that contemplates a default in 2014 caused by a combination of factors that lead to significant volume and price pressures from the company's end-markets. Our recovery analysis reflects the capital structure that would be in place if the company issues...
Companies mentioned in this report are:
- Houghton International Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis