S&P gives B to SRAM facilities

S&P said it assigned its B issue-level rating and 3 recovery rating to SRAM LLC's proposed senior secured debt issues, which include a $570 million term loan B due 2024 and a $40 million revolving credit facility due 2022.

The 3 recovery rating indicates an expectation for meaningful recovery (50% to 70%; rounded estimate 55%) of principal in the event of a payment default.

The company will use the proceeds to fund the refinancing of its existing debt.

SRAM’s B corporate credit rating and stable outlook are unchanged.

"The corporate credit rating on SRAM primarily reflects our expectation for operating lease-adjusted debt to EBITDA to be in the high-4x area in 2017," S&P credit analyst Justin Gerstley said in a news release.

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