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Kestrel Auto Components · KACO
DEMO DATAUNDERWRITING ASSUMPTIONPASSDEMO DATA — fictional company with illustrative numbers.
Powertrain and chassis components supplier with EV-transition programs delayed and OEM volume under pressure.
Recommendation
PASS
3 core test(s) failed
Credit score
38 / 100
High
Base IRR
14.0%
vs hurdle 12.0%
Downside IRR
-4.6%
default case
Severe recovery
38%
IRR -10.8%
Net leverage
6.4x
FY2025A
EBITDA / interest
1.68x
FY2025A
Overview
| Sector / industry | Autos / Tier-1 Auto Supplier |
| Headquarters | Troy, MI |
| Revenue (FY2025A) | $1.8B |
| EBITDA (FY2025A) | $162M |
| Total debt (face value) | $1.1B |
| Cash | $60M |
| Net debt | $1.0B |
| Asset / collateral base | $900M |
| Enterprise value (assumed multiple) | $1.1B |
Investment thesis UNDERWRITING ASSUMPTION
First-lien pari with the revolver at 84 with ~$900M of PP&E, receivables and inventory behind it. Margins compressing and a 2027 unsecured maturity create a probable restructuring in which the first lien is covered in base/downside and impaired in severe.
| Instrument | First-Lien Term Loan |
| Face value / purchase price / cash investment | $100M / 84.0 / $84.4M UNDERWRITING ASSUMPTION |
| Current yield · yield to maturity | 11.2% · 19.1% |
Key protections
- Yield ~13% on a first-lien loan
- Likely amend-and-extend with fee/spread step-up
- OEM customer support (resourcing protections)
Key risks
- Further volume declines
- Customer pricing give-backs
- Pension and warranty claims ahead of creditors
Key catalysts
- Revolver maturity June 2027
- Unsecured notes September 2027
- Covenant reset
Data-quality notes
- All figures are fictional and illustrative.
Sources & data lineage (3)
| Source | Document | Data type | Period | Accession | Doc date | Retrieved | Class |
|---|---|---|---|---|---|---|---|
| CreditIQ demo dataset | Kestrel Auto Components — illustrative financial statements FY2022–FY2025 | Income statement / cash flow | FY2022–FY2025 | — | 2026-03-31 | 2026-03-31 | DEMO DATA |
| CreditIQ demo dataset | Kestrel Auto Components — illustrative capital structure & covenants | Debt schedule | As of 2026-03-31 | — | 2026-03-31 | 2026-03-31 | DEMO DATA |
| CreditIQ demo dataset | Illustrative indicative bid marks (% of par) | Market price | 2026-03-31 | — | 2026-03-31 | 2026-03-31 | DEMO DATA |