BWX Technologies Inc.'s $400 Million Unsecured Note Rating Lowered To 'BB-' On Upsized Revolver - S&P Global Ratings’ Credit Research

BWX Technologies Inc.'s $400 Million Unsecured Note Rating Lowered To 'BB-' On Upsized Revolver

BWX Technologies Inc.'s $400 Million Unsecured Note Rating Lowered To 'BB-' On Upsized Revolver - S&P Global Ratings’ Credit Research
BWX Technologies Inc.'s $400 Million Unsecured Note Rating Lowered To 'BB-' On Upsized Revolver
Published Mar 25, 2020
3 pages (1369 words) — Published Mar 25, 2020
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Abstract:

TORONTO (S&P Global Ratings) March 25, 2020--S&P Global Ratings today lowered its rating on BWX Technologies Inc.'s $400 million unsecured notes due 2026 to 'BB-' from 'BB'. We revised the recovery rating on this debt to '5' from '4', indicating expectations for a modest (10%-30%; round estimate: 25%) recovery in a payment default. The company recently increased its secured revolver (unrated) to $750 million from $500 million, resulting in lower recovery for the unsecured borrowers. The upsized revolver no longer has a Canadian borrower and the maturity has been extended to 2025. ISSUE RATINGS-RECOVERY ANALYSIS Key analytical factors: The company's capital structure pro forma for the transaction consists of a $750 million secured revolver due 2025 (unrated), approximately $46 million

  
Brief Excerpt:

...March 25, 2020 TORONTO (S&P Global Ratings) March 25, 2020--S&P Global Ratings today lowered its rating on BWX Technologies Inc.'s $400 million unsecured notes due 2026 to '##-' from '##'. We revised the recovery rating on this debt to '5' from '4', indicating expectations for a modest (10%-30%; round estimate: 25%) recovery in a payment default. The company recently increased its secured revolver (unrated) to $750 million from $500 million, resulting in lower recovery for the unsecured borrowers. The upsized revolver no longer has a Canadian borrower and the maturity has been extended to 2025. ISSUE RATINGS-RECOVERY ANALYSIS Key analytical factors: - The company's capital structure pro forma for the transaction consists of a $750 million secured revolver due 2025 (unrated), approximately $46 million outstanding term loan A due 2023 issued in the U.S., and approximately $214 million outstanding term loan A issued by Canadian subsidiary, BWXT Canada Ltd. (both unrated and due in 2023), and...

  
Report Type:

Ratings Action

Ticker
BWXT
Issuer
BWX Technologies Inc.
GICS
Aerospace & Defense (20101010)
Sector
Global Issuers
Country
United States
Region
United States
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "BWX Technologies Inc.'s $400 Million Unsecured Note Rating Lowered To 'BB-' On Upsized Revolver" Mar 25, 2020. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/BWX-Technologies-Inc-s-400-Million-Unsecured-Note-Rating-Lowered-To-BB-On-Upsized-Revolver-2401550>
  
APA:
S&P Global Ratings’ Credit Research. (). BWX Technologies Inc.'s $400 Million Unsecured Note Rating Lowered To 'BB-' On Upsized Revolver Mar 25, 2020. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/BWX-Technologies-Inc-s-400-Million-Unsecured-Note-Rating-Lowered-To-BB-On-Upsized-Revolver-2401550>
  
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