Research Update: Range Parent Inc. Upgraded To 'CCC' From 'SD' Following Distressed Exchange; Outlook Negative; New Debt Rated

Itasca, Ill.-based components and control systems manufacturer Range Parent Inc. (Robertshaw) recently completed the exchange of most of its first- and second-lien term loan facilities for new priority debt. In our view, the company's capital structure remains unsustainable based on its weak operating performance trends, negative cash flow generation, very high leverage, and remaining near-term maturities. As a result, we raised our issuer credit rating to 'CCC' from 'SD' (selective default). We assigned our 'B-' issue-level rating and '1' recovery rating to Robertshaw's new $98 million first-out debt facility, 'CCC' rating and '4' recovery rating to the new $373 million second-out facility, and 'CC' rating and '6' recovery rating to the new $73 million third-out, $23 million fourth-out, and $29

...- Itasca, Ill.-based components and control systems manufacturer Range Parent Inc. (Robertshaw) recently completed the exchange of most of its first- and second-lien term loan facilities for new priority debt. - In our view, the company's capital structure remains unsustainable based on its weak operating performance trends, negative cash flow generation, very high leverage, and remaining near-term maturities. - As a result, we raised our issuer credit rating to '###' from '##' (selective default). - We assigned our 'B-' issue-level rating and '1' recovery rating to Robertshaw's new $98 million first-out debt facility, '###' rating and '4' recovery rating to the new $373 million second-out facility, and '##' rating and '6' recovery rating to the new $73 million third-out, $23 million fourth-out, and $29 million fifth-out debt facilities. - Concurrently, we withdrew our 'D' issue-level ratings on the company's existing first- and second-lien term loans. A total of $96 million remains outstanding,...

Research Update