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Trident Automotive PLC Rated by S&P; Outlook Stable

1 December 1997

Trident Automotive PLC Rated by S&P; Outlook Stable

    NEW YORK, Dec. 1 -- Standard & Poor's assigned its single-
'B'-minus rating to Trident Automotive PLC's $75 million senior subordinated
notes due 2005. Standard & Poor's also assigned its single-'B'-plus corporate
credit rating. The company's bank lines, which mature in six years and consist
of a $50 million term loan, a $25 million revolving credit facility and a
$30 million acquisition facility, are rated single-'B'-plus by Standard &
Poor's. Bank facilities are secured by a majority of the assets of the company
and its subsidiaries. While the bank lines derive strength from their secured
position, based on Standard & Poor's simulated default scenario, it is not
clear that a distressed enterprise value would be sufficient to cover the
entire loan facilities.
    Ratings reflect the company's aggressive financial profile and decent
niche position in the competitive and cyclical original equipment automotive
supply industry. Trident produces cable assemblies, lighting products and door
handle assemblies for original equipment automotive manufacturers. About
two-thirds of sales come from cable assemblies. Trident is well diversified in
terms of customers and geography. It supplies most of the major automotive
producers and derives about one-third of its sales from outside North America.
This customer and geographic diversity is important given the challenging
industry in which the company competes. Although its products are fairly
mature, Trident expects to achieve growth from the increasing use of cable
assemblies in manual transmissions in Europe and from acquisitions. This
acquisition potential adds an element of risk to a company that is already
highly leveraged. Trident is being acquired for $157.5 million by UBS Capital
B.V., The Phildrew Ventures Fourth Fund and management, who are investing
$42.5 million of equity in the deal. Pro forma debt/capital is approximately
75% and total debt/earnings before interest taxes, depreciation, and
amortization (EBITDA) is about 3.5x.

    OUTLOOK:  STABLE
    Upside rating potential is limited by cyclical and competitive industry
conditions and the possibility of acquisitions. Downside potential is limited
by prospects for healthy end market demand over the near to intermediate term
and ongoing efficiency improvement efforts, Standard & Poor's said. --
CreditWire.

SOURCE  Standard & Poor's CreditWire