TEXT-S&P rates German machine maker KraussMaffei 'B';outlook stable
Dec 05 -
-- KraussMaffei GmbH, a plastics-processing machinery manufacturer, is being acquired by Onex Capital Partner from Madison Capital in a leveraged buyout.
-- The acquisition financing includes a proposed EUR325 million bond and a EUR75 million revolving credit facility, along with equity provided by Onex.
-- We are assigning our 'B' corporate credit rating to KraussMaffei and a 'B-' issue rating and a recovery rating of '5' to the company's senior unsecured bond.
-- The stable outlook reflects our belief that KraussMaffei's operating performance will remain relatively steady in 2013, despite moderating growth in the plastic machinery market, which had recovered strongly in 2010 and 2011.
On Dec. 5, 2012, Standard & Poor's Ratings Services assigned its 'B' long-term corporate credit rating to KraussMaffei GmbH, a German plastics-processing machinery manufacturer, and to Munich Holdings Corporation II S.a.r.l, the indirect parent of KraussMaffei. The outlook is stable.
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