Reuters logo
TEXT-S&P rates Thermadyne Holdings notes 'B-'
March 1, 2012 / 7:41 PM / 6 years ago

TEXT-S&P rates Thermadyne Holdings notes 'B-'

 (The following statement was released by the rating agency)	
 March 1 - OVERVIEW	
  -- U.S.-based Thermadyne Holdings plans to issue $100 million in add-on 	
notes to its existing $260 million senior secured notes due 2017. It will use 	
proceeds to return a similar amount of capital to its sponsors.	
  -- The total $360 million senior secured notes are rated 'B-' with a 	
recovery rating of '5'.	
  -- The stable outlook reflects our view that Thermaydne will continue to 	
operate with credit measures that are in line with our expectations.	
 	
  March 1 - Standard & Poor's Ratings Services said today that St.
Louis-based Thermadyne Holdings Corp.'s proposed add-on to the company's senior
secured notes due 2017 is rated 'B-'. The recovery rating on the notes remains
'5', reflecting our expectation for modest (10%-30%) recovery for lenders in the
event of a default. Thermadyne will use the proceeds to pay its sponsors a
dividend.	
	
Although the completion of the add-on would reduce recovery prospects by 	
increasing the aggregate amount of senior secured notes to $360 million, the 	
outcome of our recovery analysis indicates that recovery prospects would 	
remain in the 10%-30% range (albeit shifting down slightly from the high end 	
of the range) synonymous with a '5' recovery rating. The add-on results in 	
adjusted metrics that are in line with our current expectations, including 	
debt to EBITDA of about 6x incorporating the remaining preferred stock that we 	
treat as debt.	
	
The ratings on Thermayne reflect our view of the company's business risk 	
profile as "weak" and its financial risk profile as "highly leveraged" based 	
on our criteria. We believe it will maintain its leading positions in its 	
markets as a niche participant in the competitive and cyclical global 	
welding-equipment industry. For the complete rationale on Thermadyne, please 	
see our research update published Feb. 15, 2012, on RatingsDirect. 	
	
For our updated recovery analysis, please see our recovery report on 	
Thermadyne to be published immediately following this report.	
	
RATINGS LIST	
Thermadyne Holdings Corp.	
 Corporate credit rating        B/Stable/--    	
	
 Senior secured	
  $360 mil. notes due 2017      B-	
Recovery rating              5	
	
	
Complete ratings information is available to subscribers of RatingsDirect on 	
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 	
by this rating action can be found on Standard & Poor's public Web site at 	
www.standardandpoors.com. Use the Ratings search box located in the left 	
column.	
	
 (New York Ratings Team)	
 

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below