TriMas Corp. (TRS) Ratings Under Review by Moody's Following Spinoff Plans
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Overall Analyst Rating:
NEUTRAL ( Up)
Dividend Yield: 0.6%
Revenue Growth %: +0.3%
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Moody's Investors Service has placed the ratings of TriMas Corporation (NASDAQ: TRS), including its Ba2 corporate family rating and Ba2 senior secured ratings, under review for possible downgrade. The review follows the company's announcement that it intends to separate its business into two independent publicly traded companies comprised of "New TriMas" which will continue to focus on the company's packaging, aerospace, energy and engineered components segments and "Cequent" which will be comprised of TriMas' existing Cequent Americas and Cequent APEA segments which manufacture and sell towing, trailer and cargo management products to various end markets.
The review will consider the meaningful reduction in TriMas' size after the spin-off along with the potential for improved margins with increased focus on the higher-growth areas such as packaging and aerospace, including the recent acquisition of Allfast Fastening Systems. The review will also consider the company's pro forma capitalization and its stand-alone earnings and cash flow generating capabilities. The transaction is expected to be completed by mid 2015.
The following summarizes Moody's ratings and today's rating actions for TriMas Corporation and TriMas Company LLC:
Corporate Family Rating, under review for downgrade from Ba2
Probability of Default Rating, under review for downgrade from Ba2-PD
$575 million senior secured revolver due 2018, under review for downgrade from Ba2, LGD3
$450 million senior secured term loan due 2018, under review for downgrade from Ba2, LGD3
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