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Research Update: SRAM LLC's Proposed $570 Million Term Loan B And $40 Million Revolving Credit Facility Are Rated 'B'

Published Feb 24, 2017

8 pages (2737 words) — Published Feb 24, 2017

Price US$ 225.00 | Buy this Report Now

About This Report

Abstract:

U.S. bicycle component manufacturer SRAM plans to issue a $570 million term loan B due 2024 and a $40 million revolving credit facility due 2022, and will use the proceeds to refinance existing debt. We are assigning our 'B' issue level rating and '3' recovery rating to the company's proposed senior secured credit facility. Additionally, our 'B' corporate credit rating and stable outlook are unchanged. The stable outlook reflects our expectation for order volumes to continue to stabilize this year and for good EBITDA coverage of interest expense above 4x through 2018. Additionally, we believe that the company will continue to dedicate available free cash flow toward paying down debt. On Feb. 24, 2017, S&P Global Ratings assigned its 'B'

Brief Excerpt:

...(Editor's Note: The following article originally misstated the country risk modifier in the Ratings Score Snapshot. The corrected article appears below.)...

Report Type:

Research Update

Issuer

SRAM LLC

GICS

Leisure Products (25202010)

Sector

Global Issuers

Country

United States

Region

United States

Format:

PDF

Research Update: SRAM LLC 'B' Rating Outlook Revised To Positive On Improved Operating Performance Resulting In EBITDA Growth – 2017/09/14 – US$ 225.00

Research Update: SRAM LLC Upgraded To 'B+' On Improved Operating Performance And Debt Repayment; Outlook Stable – 2018/04/11 – US$ 225.00

SRAM LLC – 2019/04/04 – US$ 500.00

Summary: SRAM LLC – 2019/04/04 – US$ 225.00

Research Update: SRAM Upgraded To 'BB-' On Better Operating Performance And Financial Policy Despite Leveraging Dividend; Outlook Stable – 2019/07/09 – US$ 225.00

Research Update: SRAM LLC Rating Lowered To 'B' On Prolonged Elevated Leverage; Outlook Stable – 2016/02/24 – US$ 225.00

Research Update: SRAM LLC Rating Lowered To 'B+' On Weaker Operating Performance; Outlook Negative – 2015/10/26 – US$ 225.00

Summary: SRAM LLC – 2015/05/11 – US$ 225.00

Summary: SRAM LLC – 2014/08/15 – US$ 225.00

SRAM LLC 'BB-' Rating Outlook Revised To Negative From Stable On Weak Operating Performance – 2014/02/14 – US$ 150.00

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Cite this Report


MLA:	S&P Global Ratings’ Credit Research. "Research Update: SRAM LLC's Proposed $570 Million Term Loan B And $40 Million Revolving Credit Facility Are Rated 'B'" Feb 24, 2017. Alacra Store. May 05, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-SRAM-LLC-s-Proposed-570-Million-Term-Loan-B-And-40-Million-Revolving-Credit-Facility-Are-Rated-B-1839599>

APA:	S&P Global Ratings’ Credit Research. (). Research Update: SRAM LLC's Proposed $570 Million Term Loan B And $40 Million Revolving Credit Facility Are Rated 'B' Feb 24, 2017. New York, NY: Alacra Store. Retrieved May 05, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-SRAM-LLC-s-Proposed-570-Million-Term-Loan-B-And-40-Million-Revolving-Credit-Facility-Are-Rated-B-1839599>

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