S&P Rts International Wire Group Inc.'s $100M Sr Sub Nts B-.NEW YORK--(BUSINESS WIRE)-- Standard & Poor's CreditWire 6/10/97-- Standard & Poor's has assigned its single-'B'-minus senior subordinated rating to International Wire Group Inc.'s (subsidiary of International Wire Holding Co.) proposed $100 million series B senior subordinated notes due 2005. The existing single-'B'-plus corporate credit rating and single-'B'-minus subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". rating have been affirmed. Proceeds of the new issue are expected to be used to refinance existing bank debt. The ratings reflect the company's material market shares in copper wire products used primarily to transmit electricity in automotive, appliance, and computer and data communication applications and its aggressive financial leverage and growth strategy. With the March 1996 acquisition of Dekko dekko Noun Brit, Austral & NZ slang have a dekko have a look [Hindi dekhnā to see] Noun 1. Group, the company solidified its position as a major supplier of insulated wire wire covered with some nonconducting material, such as plastic or silk, for use in conducting electricity. See also: Insulated to the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. . More recently, with the acquisition of Camden Wire, the company increased its share of the non-insulated wire business and contributed to the rationalization of that market. A diversity of manufacturing facilities provides flexibility of operations while reducing the risk of disruption. Yet, International Wire is affected by intense competition from other producers, a concentrated and powerful customer base, and cyclical swings in demand in certain markets. Operating performance should benefit from relatively stable margins, from the integration of recent acquisitions, and from favorable trends for copper wiring usage in target industries. However, the company faces significant customer concentration which could result in sales volatility once long-term contracts expire. As a result of debt-financing its acquisitions and a $93 million charge for asset write-downs in the fourth quarter of 1996, the company has a burdensome debt load and negative net worth. Moreover, International Wire's heavy debt load is not expected to lighten light·en 1 v. light·ened, light·en·ing, light·ens v.tr. 1. a. To make light or lighter; illuminate or brighten. b. To make (a color) lighter. 2. significantly given the potential for further acquisitions. Consequently, cash flow protection will be weak, even in light of modest capital investment needs. However, some financial flexibility is afforded under bank credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities . OUTLOOK: Negative. International Wire's financial performance should benefit from integration of recent acquisitions. However, should further debt-financed acquisitions be undertaken in the absence of other actions to bolster the balance sheet, a downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. could occur, Standard & Poor's said. -- CreditWire CONTACT: Ronald A Johnson, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , 212/208-5201 |
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