...January 30, 2024 NEW YORK (S&P Global Ratings) Jan. 30, 2024--S&P Global Ratings today affirmed its 'B' issue-level rating on Arcline FM Holdings LLC's (Fairbanks Morse Defense [FMD]) proposed upsized first-lien term loan due 2028. The '3' recovery rating remains unchanged, indicating our expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a default. At the same time, we affirmed our '###+' issue-level rating on FMD's second-lien term loan due 2029. The '6' recovery rating remains unchanged, indicating our expectation for negligible (0%-10%; rounded estimate: 0%) recovery in the event of a default. The company plans to upsize its existing first-lien term loan by $125 million while also rolling the $209 million incremental term loan it issued in November 2023 into the facility. We expect FMD will use the proceeds from the additional debt to pay down a portion of its second-lien term loan, which leads us to view the transaction as leverage neutral. We also...
