Propulsion (BC) Finco S.a r.l.

Overview Key strengths Key risks ITP Aero benefits from a strong market position, thanks to its tier 1 supplier status and full module design-and-make capabilities. High customer concentration and high exposure to wide-body commercial aerospace platforms. ITP Aero continues to benefit from the recovery in commercial air passenger traffic and increased defense spending across Europe. Highly leveraged financial structure with debt to EBITDA of more than 6.0x (excluding CPECs), however we expect this will improve toward 5.0x in 2024. Adequate liquidity with a long-dated maturity profile and ample covenant headroom. Private equity ownership means strategy and financial policy can be driven by the sponsor. ITP Aero used the proceeds to acquire BP Aerospace, an independent provider of engine maintenance, repair,

...S&P Global Ratings considers that ITP Aero's recent 184 million ($200 million) term loan B (TLB) add-on has left the company's credit metrics within the thresholds for the current rating. ITP Aero used the proceeds to acquire BP Aerospace, an independent provider of engine maintenance, repair, and overhaul (MRO) services, and to pay associated transaction fees. The acquisition will expand ITP Aero's MRO offering and strengthen its footprint in the U.S. by improving its scale and geographic diversification. Following the transaction, ITP Aero's S&P Global Ratings-adjusted debt will increase to about 1.5 billion. We expect that the company's S&P Global Ratings-adjusted EBITDA will grow faster than we previously anticipated due to the contribution from the new acquisition and a positive ongoing operating performance amid the civil aerospace market recovery. The ongoing recovery in commercial air passenger traffic and increased defense spending across Europe is benefitting ITP Aero. Domestic...

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