Nordson Corp.'s Proposed Senior Unsecured Notes Rated 'BBB'
NEW YORK (S&P Global Ratings) Sept. 7, 2023--S&P Global Ratings today assigned its 'BBB' issue-level rating to Nordson Corp.'s proposed senior unsecured notes. The company intends to use the net proceeds to repay the €760 million, 364-day term loan it issued to purchase the ARAG Group.
All of our other ratings on Nordson are unchanged. Our 'BBB' preliminary rating on Nordson reflects the company's strong EBITDA margins, as well as its healthy financial profile. While the company's recently announced acquisition of ARAG will modestly increase leverage, we believe it fits well within the overall business. The company's geographic reach and its good relationship with customers also support our rating. On the other hand, the company's scale is small relative to similarly rated peers.
For more information, see our latest research update on Nordson, published on Aug. 31, 2023.
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