Research Update: Maxim Crane Works Holdings Capital LLC Ratings Placed on CreditWatch Negative On Refinancing Risk

Maxim Crane Works Holdings Capital LLC extended the maturity of its asset-based (ABL) revolving credit facility to 2025, but it will essentially become current in early May of 2023 due to a springing feature 91 days before the maturity of its senior secured notes. The company is currently considering refinancing options on its senior secured notes, which are due Aug. 1, 2024. However, we believe it is likely the company will not refinance its senior secured notes until after the ABL becomes current. While we expect Maxim Crane's operating performance will continue to improve, we believe risks have increased given the weakened macroeconomic environment and higher interest rates. Therefore, we placed our 'B-' issuer credit rating on Maxim Crane on

...- Maxim Crane Works Holdings Capital LLC extended the maturity of its asset-based (ABL) revolving credit facility to 2025, but it will essentially become current in early May of 2023 due to a springing feature 91 days before the maturity of its senior secured notes. - The company is currently considering refinancing options on its senior secured notes, which are due Aug. 1, 2024. However, we believe it is likely the company will not refinance its senior secured notes until after the ABL becomes current. - While we expect Maxim Crane's operating performance will continue to improve, we believe risks have increased given the weakened macroeconomic environment and higher interest rates. - Therefore, we placed our 'B-' issuer credit rating on Maxim Crane on CreditWatch with negative implications. - We also revised our liquidity assessment on Maxim Crane to less than adequate from adequate. - The CreditWatch placement reflects the possibility that we could lower our ratings on Maxim if the company...

Research Update