S&P gives Husky Injection loan, notes B-

S&P said it assigned B- issue-level and 4 recovery ratings to Husky Injection Molding Systems Ltd.'s planned $1.3 billion first-lien senior secured term loan due 2029 and $1.3 billion of senior secured notes due 2029. The 4 recovery rating indicates average (30%-50%; rounded estimate: 40%) recovery in default.

The rating is in line with that on Husky’s outstanding senior secured debt.

The company plans to use proceeds along with $520 million of payment-in-kind preferred equity, to refinance its capital structure.

“Upon the completion of the proposed refinancing, we will likely affirm our existing B- issuer credit rating (ICR) on Husky. Furthermore, we expect the company's recent operating performance--along with these proposed changes to its capital structure--will support its ratings stability. This reflects our view that Husky's proposed capital structure will materially reduce its refinancing risk and modestly improve its S&P Global Ratings-adjusted credit metrics,” the agency said in a press release.

The outlook is negative.

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