Apex Tool Group LLC was upgraded Feb. 4 by S&P Global Ratings to B- from CCC, and its outlook was revised to stable from CreditWatch Positive after the company completed a series of financings and debt repayments that pushed out maturities and reduced near-term default risk. Ratings assigned a B- rating as well to the company's new $855 million first-lien term loan (secured overnight financing rate+CSA+525, 0.50% floor) and $171 million revolver and a CCC+ rating to a new $350 million second-lien term loan.

S&P Global Ratings noted that in addition to the refinancings, which extended the weighted average maturity of Apex's debt to approximately 6.5 years, private equity sponsor Bain injected $181 million of new common equity into the capital structure.

Operationally, Ratings said Apex has experienced EBITDA growth since the second half of 2020, helped by a "robust rebound" in the company's construction and auto markets. The agency anticipates that financial performance will continue improving in 2022, with top-line growth projected to hit "high-single digits or nearing 10%." Liquidity is considered to be "adequate," according to Ratings.

Sparks, Md.-based Apex Tool Group is a global manufacturer of hand and power tools for industrial, commercial and retail customers. It is owned by Bain Capital.