(The following statement was released by the ratings agency)
NEW YORK, April 18 - Standard & Poor's Ratings Services said today that it placed its 'B' corporate credit rating on Sterling Heights, Mich.-based Advanced Accessory Systems LLC on CreditWatch with developing implications. At the same time, Standard & Poor's withdrew its 'B' rating on Advanced Accessory's senior secured credit facility and its 'CCC+' rating on the company's $125 million of senior subordinated notes.
The rating actions follow the announcement that a private-equity investment fund managed by Castle Harlan has acquired Advanced Accessory with management in a transaction valued at about $260 million.
"Standard & Poor's expects to resolve the CreditWatch listing after discussions with Advanced Accessory's management and analysis of any changes to the company's business and financial profiles resulting from the buyout transaction," said Standard & Poor's credit analyst Nancy C Messer.
As part of the transaction, Advanced Accessory has exercised its option of early redemption for all the 9.75% senior subordinated notes due 2007, at the current optional redemption price of 104 7/8% of principal amount, plus accrued interest, and called all of the notes for redemption on May 15, 2003. Advanced Accessory stated that it deposited in an irrevocable trust with the trustee enough funds for the redemption of the notes.
Advanced Accessory is a global producer of towing and rack systems for the original equipment and aftermarket segments of the automotive industry. Complete ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; under Fixed Income in the left navigation bar, select Credit Ratings Actions.