Funds managed by Apollo Global Management, Inc. (?Apollo?) are separating the Industrial segment from Goat Holdco LLC (dba Barnes Group) through a new entity, Industrial Holdco L.P. (dba Barnes Industrial). Apollo plans to capitalize Barnes Industrial through a proposed $425 million term loan B, $125 million revolving credit facility (undrawn at close), and $75 million of cash funded to its balance sheet. Barnes Industrial will remain under Apollo?s ownership following the separation. We assess the company?s business as having limited scale within highly competitive industries and potential volatility of profitability, notwithstanding its good position in key served markets and a highly variable cost structure. Pro forma for the separation and related financing, we forecast S&P Global Ratings-adjusted leverage to be
