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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: The Perfect Hedge who wrote (4548)	12/6/1997 10:08:00 AM
From: Bob A Louie	Respond to of 95453

Glen, excuse me if this is old news. Bill Thursday December 4, 12:20 pm Eastern Time Company Press Release S&P Raises EVI Inc.'s Ratings Off Watch, Outlook Stable NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 12/4/97-- Standard & Poor's today raised its corporate credit rating and senior debt rating of EVI Inc. to triple-'B'-minus from double-'B'-plus. These ratings are removed from CreditWatch, where they were placed on Oct. 14, 1997. At the same time, Standard & Poor's raised its subordinated debt rating of the company to double-'B'-plus from double-'B'-minus. This rating is removed from CreditWatch, where it was placed on Oct. 27, 1997. The outlook is stable. The ratings upgrades follow the completion of the previously announced acquisitions of Trico Industries Inc., BMW Monarch Ltd., and BMW Pump Inc. for approximately $210 million in cash and assumed debt. With completion of these and other acquisitions over the last 12 months, EVI now has an expanded product offering and increased geographic breadth. Approximately 40% of total revenues will be derived from the sale of products used in the production phase of the drilling cycle, up from about 25%. As the upstream energy companies' budgets for production-related products and services are less volatile than those for exploration and development, these businesses should provide some measure of earnings stability. Over time, these segments are expected to contribute an increasing proportion of EVI's total revenues and cash flows. As a result, the company should be able to support somewhat higher debt leverage than has been the case in recent years. Following the recently completed offering of convertible subordinated debentures, EVI's debt leverage is moderate -- giving partial equity credit to the new debentures due to the securities' 30-year tenor and five-year interest deferral option. Yet, EVI is expected to remain acquisitive and could well use additional debt to fund potential purchases within its core artificial lift/completion businesses. Further improvement in the ratings remains constrained by volatility in the drill pipe/premium tubular business as well as uncertainties about the size, timing, and financing of future growth initiatives. OUTLOOK: STABLE Over the next several years, EVI should continue to benefit from anticipated healthy conditions in offshore drilling markets - notably the upstream companies' move toward deeper waters. The company is expected to continue to participate in ongoing industry consolidation within its core production-related businesses, while also maintaining a moderate financial profile. -- CreditWire --------------------------------------------------------------------------------