EnPro Industries Inc.'s $150 Million Senior Unsecured Notes Due 2022 Rated 'BB-' (Recovery Rating: '4')

NEW YORK (S&P Global Ratings) March 20, 2017--S&P Global Ratings today assigned its 'BB-' issue-level rating and '4' recovery rating to Charlotte, N.C.-based EnPro Industries Inc.'s proposed $150 million senior unsecured notes due 2022. The '4' recovery rating indicates our expectation for average (30%-50%; rounded estimate: 30%) recovery in a payment default scenario. We expect EnPro to use the proceeds from the proposed notes to repay its outstanding revolver borrowings, which should provide the company with increased availability to fund its future capital requirements, including potential contributions toward the settlement of previously-disclosed asbestos claims and other general corporate purposes. Our recovery analysis does not include the impact of EnPro subsidiary Garlock Sealing Technologies' (GST) expected reconsolidation into the company. All

...NEW YORK (S&P Global Ratings) March 20, 2017--S&P Global Ratings today assigned its '##-' issue-level rating and '4' recovery rating to Charlotte, N.C.-based EnPro Industries Inc.'s proposed $150 million senior unsecured notes due 2022. The '4' recovery rating indicates our expectation for average (30%-50%; rounded estimate: 30%) recovery in a payment default scenario. We expect EnPro to use the proceeds from the proposed notes to repay its outstanding revolver borrowings, which should provide the company with increased availability to fund its future capital requirements, including potential contributions toward the settlement of previously-disclosed asbestos claims and other general corporate purposes. Our recovery analysis does not include the impact of EnPro subsidiary Garlock Sealing Technologies' (GST) expected reconsolidation into the company. All of our other ratings on EnPro remain unchanged. We expect the company's leverage to improve to the 3x-4x range (from about 5x as of the...

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