Milacron proposes US$140 million refinancing

Plastics processing equipment supplier Milacron is seeking to US$190 million of loans to refinance debt, according to a report issued by financial services firm Standard & Poor’s.

Batavia Township, Ohio-based Milacron plans to raise a US$140 million term loan due 2017 and a US$50 million revolving credit line maturing in 2016, S&P said.

Milacron, owned by Avenue Capital Group, emerged from Chapter 11 in late 2009, after being bought by Avenue Capital and DDJ Capital Management LLC. Milacron said it shed about 80 per cent of its debt while in Chapter 11 protection.

“Currently positive demand trends should enable the company to gradually improve its financial metrics following its proposed return of capital to its shareholders,” the S&P report said. “We view the company’s business risk profile as vulnerable, despite its well-established market position in North America and India.”