InfraBuild Australia Pty Ltd: Update to credit analysis following rating affirmation

InfraBuild Australia Pty Ltd: Update to credit analysis following ratings on review for upgrade - Credit Opinion – 2023/11/10 – US$ 250.00 – ...InfraBuild Australia Pty Ltd's Caa1 corporate family rating (CFR) and existing senior secured notes rating were put on review for upgrade on 6 November 2023 following the company's launch of $350 million senior secured notes due 2028. At the same time, we assigned a B3 rating to the proposed senior secured notes and expects that the funds raised would be used to repay the company's existing $325 million senior secured notes due 2024 and cover transaction costs. The announced transaction follows the company securing additional external funding in May 2023 when it executed a $350 million 3-year senior secured asset-backed term loan (ABTL). This was the first instance of InfraBuild accessing a material new external debt facility since its initial senior secured notes raising in 2019. The company had previously stated that the ABTL proceeds were expected to be used for growth initiatives, including a potential acquisition of Liberty Steel Group USA (Liberty USA), an entity independently owned...

InfraBuild Australia Pty Ltd: Covenant Quality Post-Sale Snapshot: US$350m 14.500% Senior Secured Notes due 2028 - Covenant Quality Assessment – 2023/11/10 – US$ 750.00 – ...Score: Good (2.54) Overall, InfraBuild Australia Pty Ltd ("Issuer") covenant package provides lower- tier good protection (2.54). See Snapshot User's Guide for terminology, analytical criteria and our ranking of covenant structures. To access our other special reports and comments, please click here. Use of proceeds: repayment of the US$325m 12.0% senior secured notes due 2024. "Company" refers to Liberty InfraBuild Ltd. "Group" refers to the Company and its consolidated subsidiaries, including the Issuer. Changes from the roadshow red offering memorandum. Significant pushback against pro-Issuer terms resulted in a strengthening of the covenant protection from upper-tier weak protection (3.55) in the preliminary offering memorandum (OM) to lower-tier good protection (2.54) in the final OM. Key changes in covenant provisions include: (1) Value Leakage: protection from "downdropping" transactions added."J.Crew" protection added providing that any assets/properties (including intellectual...

Moody's rates InfraBuild Australia's proposed senior secured notes B3; places existing ratings on review for upgrade - Rating Action – 2023/11/06 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

InfraBuild Australia Pty Ltd: Update following outlook stabilization and rating affirmation - Credit Opinion – 2023/06/22 – US$ 250.00 – ...InfraBuild Australia Pty Ltd's (Caa1, stable) credit profile continues to reflect our view that refinancing risks facing the company are ongoing until it directs recently obtained funding, or other financing alternatives, to address its upcoming senior secured notes maturity in October 2024. The company's credit profile benefits from recently demonstrated ability to raise additional external funding following the execution of a USD350 million 3-year senior secured asset-based term loan (ABTL). If the company decided to use the proceeds for refinancing, the size of the ABTL would more than cover the repayment of the existing USD325 million senior secured notes maturing October 2024, which would further support its credit profile and reduce refinancing risk. However, InfraBuild has stated publicly that the proceeds of the term loan will be used to pursue potential growth and that it is considering additional funding options. Therefore, we will continue to monitor the use of proceeds from...

Moody's changes InfraBuild's outlook to stable; ratings affirmed - Rating Action – 2023/06/19 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Moody's affirms InfraBuild's ratings, outlook remains negative - Rating Action – 2023/03/06 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

InfraBuild Australia Pty Ltd: Update following rating downgrade to Caa1; outlook negative - Credit Opinion – 2021/12/16 – US$ 250.00 – ...InfraBuild Australia Pty Ltd's (Caa1, negative) reflects the increasing refinancing risk surrounding the maturity of its AUD250 million asset-based lending facility (ABL) due October 2022. If the refinancing is not completed ahead of maturity, we expect this would significantly reduce the company's liquidity buffer and flexibility to deal with any material downside to our current forecasts. However, Infrabuild's execution on its initiatives to improve its operating profile, combined with strong steel demand and pricing conditions in Australia, have supported strong earnings growth and an ongoing trend of improving credit metrics. Furthermore, the company's credit profile continues to benefit from its strong market position in steel long products in Australia and a vertically integrated business model with a flexible operating profile. The ratings also reflect the company's consistent production levels with improvement in sales volumes and utilisation rates. Furthermore, InfraBuild's credit...

Moody's downgrades InfraBuild's ratings to Caa1; outlook negative - Rating Action – 2021/12/08 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

InfraBuild Australia Pty Ltd: Update following rating downgrade to B3; ratings on review for further downgrade - Credit Opinion – 2021/10/06 – US$ 250.00 – ...InfraBuild Australia Pty Ltd's (B3, on review for downgrade) credit profile benefits from its strong market position in steel long products in Australia and a vertically integrated business model with a flexible operating profile. InfraBuild has maintained consistent production levels with sales volumes and utilisation rates improving. The ratings also reflect the company's significant working capital initiatives, the currently solid operating environment, and our expectation that government will look to use infrastructure spending as a tool to aid economic recovery. However, the company's credit profile also reflects the increasing refinancing risk surrounding the maturity of its AUD250 million asset-based lending facility (ABL) due October 2022. We view, the fact that the company has not completed its refinancing initiatives at least one year prior to its ABL maturity exposes it to material market risk and increases the likelihood of a liquidity shortfall if the refinancing is not completed...

Moody's downgrades InfraBuild to B3; ratings on review for further downgrade - Rating Action – 2021/09/28 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...