S&P rates Gates Global loan B+

S&P said it gave its B+ issue-level rating and 3 recovery rating to Gates Global LLC's proposed $1.377 billion senior secured dollar-denominated term loan due March 2027. The 3 recovery rating indicates meaningful (50%-70%; rounded estimate: 60%) recovery in default.

“Our B+ issue-level rating on the senior secured credit facilities and B issue-level rating on the senior unsecured notes are also unchanged,” S&P said in a press release.

The company will use proceeds to repay the outstanding amount on its dollar-denominated term loan due March 2024. Following Gates Global’s $300 million prepayment in the fourth quarter of 2020, about $1.377 billion remains outstanding.

“We view the maturity extension, along with the voluntary debt reduction, as credit positive and believe it improves Gates' liquidity and debt maturity profile. The revolving credit facility and euro-denominated term loan maturities are unchanged,” the agency said.

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