Engineered Machinery Holdings Inc.'s $160 Million Senior Secured First-Lien Term Loan Rated 'B-' (Recovery Rating: 3)

NEW YORK (S&P Global Ratings) Jan. 9, 2019--S&P Global Ratings today assigned its 'B-' issue-level rating and '3' recovery rating to the proposed $160 million incremental first-lien term loan due 2024 issued by Chicago-based Engineered Machinery Holdings, Inc., diversified specialty component manufacturer. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in the event of a default. The company will use the proceeds from the term loan, along with equity contributed by a sponsor, to acquire Wulftec, a manufacturer and marketer of stretch wrapping machines. Our 'B-' issuer credit rating and stable outlook on Engineered Machinery Holdings Inc. remain unchanged. We expect that solid growth in the company's end markets will allow it to continue

...NEW YORK (S&P Global Ratings) Jan. 9, 2019--S&P Global Ratings today assigned its 'B-' issue-level rating and '3' recovery rating to the proposed $160 million incremental first-lien term loan due 2024 issued by Chicago-based Engineered Machinery Holdings, Inc., diversified specialty component manufacturer. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in the event of a default. The company will use the proceeds from the term loan, along with equity contributed by a sponsor, to acquire Wulftec, a manufacturer and marketer of stretch wrapping machines. Our 'B-' issuer credit rating and stable outlook on Engineered Machinery Holdings Inc. remain unchanged. We expect that solid growth in the company's end markets will allow it to continue to increase its revenue and free cash flow over the next 12 months while successfully integrating companies it has acquired over the past year. The company has excess borrowing capacity under its...

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