A brutal market for auto suppliers and a string of dividend deals have left Lumileds, a maker of LED lighting and an Apollo portfolio company, staring at a leverage level which could top 14 times by year-end, according to Moody’s. The company’s loan saw the largest price fall in Europe over the last quarter, according to IHS Markit, and is now bid around 47, compared with 70 in June.
The rating agency downgraded the company’s dollar-denominated senior secured loan from B3 to Caa1 this week, highlighting “extremely challenging conditions in its core end-markets of automotive and consumer LEDs.”
But the company’s condition has been worsened by sponsor Apollo’s decision to take more than $500m in dividends out
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