International Wire Group Holdings Inc.'B' Rating Placed On CreditWatch Negative Following Expected Acquisition By Atlas


  • U.S.-based wire producer International Wire Group Holdings Inc. (IWG) has entered into a definitive merger agreement to be acquired by affiliates of private equity firm Altas Holding LLC.
  • Atlas will acquire all outstanding shares of IWG common stock using cash.
  • We are placing our 'B' rating on IWG and the 'B' issue rating on its senior secured debt on CreditWatch with negative implications.
  • The CreditWatch negative placement indicates that we could either affirm or lower our ratings on IWG pending our assessment of the company's operations and capital structure pro forma for the transaction under the new ownership.
NEW YORK (S&P Global Ratings) March 12, 2019—S&P Global Ratings today took the 
rating actions listed above. The CreditWatch placement follows the 
announcement that affiliates of Atlas Holdings LLC plan to acquire 
International Wire Group Holdings Inc. (IWG), a U.S.-based copper wire 
producer. Under the terms of the agreement, Atlas will acquire all outstanding 
shares of IWG's common stock in cash for $10.70 per share, translating to 
about $50 million in proceeds. 

We aim to resolve the CreditWatch in the coming months pending additional 
information on the transaction and IWG's pro forma capital structure. 

We could lower our ratings on IWG if we believe the company's credit profile 
post-acquisition will significantly deteriorate, resulting in EBITDA interest 
coverage of about 1.5x and debt to EBITDA above 7x-8x. We could affirm the 
rating if, when the transaction closes, the company's capital structure and 
operational performance support EBITDA interest coverage around 2x and debt to 
EBITDA of about 5x-6x. If the rating was affirmed, the outlook would depend on 
expected near-term financial results, expected to be produced by 2019. We 
could also lower the ratings on IWG if we expect operational weakness to 
persist.
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