S&P assigns Clarios notes B

S&P said it assigned a B rating with a 3 recovery rating to Clarios Global LP’s proposed $500 million of senior secured notes due 2025. The 3 recovery rating indicates S&P’s estimate for meaningful (50%-70%; rounded estimate: 50%) recovery for secured lenders in the event of a default.

The proceeds will be used to refinance borrowings under its asset-based lending and revolving facilities.

“We believe that additional debt leverage following the proposed transaction is offset by the increased liquidity and our stable outlook reflects our view that the company will generate positive free operating cash flow over the next 12 months,” S&P said in a press release.

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