fabriziof
Forumer storico
L’inesorabile traiettoria quinquennale di un bond tedesco 
Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate, vol.3
- Creatore Discussione fabriziof
- Data di Inizio
cristian2008
Forumer attivo
Salve, qualcuno ha ricevuto il pagamento del rimborso anticipato ELEVING XS2393240887 ? a 100 ? Grazie
fabriziof
Forumer storico
Dovrebbe essere in arrivo
apudmontem
Forumer storico
Ricevuto
fedro10
è la somma che fa il totale...
|6 min read
|28 Oct 2025
Moody's Ratings affirmed Lummus' B2 CFR rating and downgraded its 1st lien revolver and TL due to refinancing; outlook stable
Moody's Ratings
New York, October 28, 2025 -- Moody's Ratings (Moody's) affirmed Lummus Technology Holdings V LLC's ("Lummus") B2 Corporate Family Rating (CFR) and B2-PD Probability of Default Rating (PDR). We also downgraded the rating of its backed senior secured first lien revolving bank credit facility to B2 from B1, its backed senior secured first lien term loan to B2 from B1, and assigned a B2 rating to its proposed $280 million backed senior secured first lien revolving credit facility. There will also be a proposed up to $450 million incremental add-on to its existing first lien term loan. The proceeds of the incremental add-on will be used to refinance its senior unsecured notes. The Caa1 rating of its senior unsecured notes has been reviewed in the rating committee and is unchanged. The outlook remains stable.RATINGS RATIONALE
Our affirmation of Lummus' B2 CFR reflects the expectation of stable operating performance and a financial profile consistent with the current rating over the next 12 to 18 months. The downgrade of the first lien revolver and first lien term loan reflects the preponderance of the first lien debts in its capital structure following the refinancing of the senior unsecured notes.
A comprehensive review of all credit ratings for the respective issuer(s) has been conducted during a rating committee.
We expect operating environment will be challenging for Lummus due to the prolonged downturn in the petrochemical sector with facility closures, project delays and weakening credit profiles of many customers. Lummus has delivered stable business and financial performance so far 2025, thanks to the indispensable nature of its catalysts and services to refineries and petrochemical producers. It maintained a sizeable backlog of $3.1 billion compared with an annual revenue of less than $1 billion as of June 2025, which supports revenue and earnings resilience. Moody's-adjusted EBITDA declined to $259 million in the LTM ended June 2025 due to a reserve charge in Q2 2025, which led to an increase in leverage as measured by adjusted debt/EBITDA to 7.0x, up from about 6.0x in 2024. While the company's engagement with the end customer may lead to a reversal of the charge, it highlights the risk of a slowdown in both business activity and cash collections. Excluding the impact of this non-cash charge, Lummus' LTM EBITDA and leverage would remain largely flat from the 2024 levels. The company's high margins and low CapEx requirements continued to support its strong cash flow generation capabilities. Its free cash flow exceeded $100 million for the LTM ended June 2025, which however was used to fund the remainder of its shareholder distribution plan announced in 2024. Despite weak global economic growth, we expect Lummus will maintain its adjusted EBITDA in the $290 million range in 2026, supported by its sizable backlog. But as the company prioritizes free cash flow deployment for shareholder returns and growth initiatives, its total debt will remain flat, resulting in its leverage staying around 6.0x in next 12 to 18 months.
Lummus' credit profile reflects its strong technology platform and leading market shares across segments. Its asset light business model with high barriers to entry contributes to solid EBITDA margins and good cash flow generation.
Lummus' credit profile is constrained by its high leverage, including Moody's standard adjustments, which is expected to remain around 6.0x in 2026. The credit profile is also constrained by its relatively small scale compared to its key competitors and the aggressive financial policy under its private equity ownership.
Lummus' liquidity is good. The company had cash on the balance sheet of approximately $170 million including about $80 million drawdown from its $175 million revolving credit facility as of June 2025. Concurrent with the refinancing, Lummus will increase its revolver commitment to $280 million, its letter of credit facility to $345 million, and extend their maturity to December 2030. Lummus's total liquidity will be more than sufficient to cover its short-term debts of $12 million as of June 2025, as well as its low CapEx and modest working capital requirements over the next 12 months.
The B2 ratings on the first lien revolving bank credit facility and first lien term loan are in line with the B2 CFR, reflecting the preponderance of the first lien debts in its capital structure. The Caa1 rating on the senior unsecured notes reflects the effective subordination to the first lien debts in capital structure and the expectation of a considerable loss in value in a default scenario.
RATING OUTLOOK
The stable outlook reflects that Lummus' financial and operating performance will remain stable and consistent with our expectations.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade could be considered if company continues to improve business scale and diversity, its financial leverage is sustained below 5.5x, and free cash flow-to-debt (FCF/Debt) is sustained above 15%. An upgrade would require that its sponsors would commit to maintaining a stronger credit profile.
A downgrade could be considered if leverage is sustained above 7.0x, the company faces operational challenges, or if the backlog experiences a high level of cancellations.
ESG CONSIDERATIONS
Environmental, social, and governance factors are important factors influencing Lummus' credit quality, but not a driver of today's actions. Lummus' (CIS-4) score indicates that the rating is lower than it would have been if ESG risk exposures did not exist. Governance risks are the most significant and stem from the sponsors' willingness to maintain a significant amount of debt in the capital structure, which weakens credit metrics. As a provider of services, equipment and catalysts to the refining and petrochemical industries environmental risks are limited but expected to increase over the longer term. Similarly, social risks are limited as well but expected to increase over time due to the company's end markets.
Lummus Technology Holdings V LLC, based in Houston, Texas, is a leading technology licensing, catalyst and equipment supplier for the refining and petrochemical industries. Lummus Technology has over 150 licensable technologies with long term customer relationships among the major global petrochemical and refining companies. The company has strong market positions in the petrochemical and ethylene markets, as well as in polypropylene licensing technology. It also has significant expertise in hydroprocessing technology through the Chevron Lummus Global joint venture (CLG) where it has a 65% ownership. The company is owned by The Chatterjee Group ("TCG") and Rhône Capital. Lummus Technology reported total revenue of about $940 million in the last twelve months ended 30 June 2025.
The principal methodology used in these ratings was Chemicals published in October 2023 and available at Ratings.Moodys.com. Alternatively, please see the Rating Methodologies page on https://ratings.moodys.com for a copy of this methodology.
The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement.
Sniper76
Forumer attivo
ricevuto
cristian2008
Forumer attivo
A 100 ?
Sniper76
Forumer attivo
fabriziof
Forumer storico
Vedo sul conto la mirabolante cedola del USC07885AM59
Bausch Health Announces Third Quarter 2025 Results
ACCESS Newswire is the leading global press release distribution service. Tell your story and reach millions of journalists. Contact us today to get started.www.accessnewswire.com
Similar threads
