S&P trims Anchor Glass Container loan to BB-

S&P said it revised its recovery rating on Anchor Glass Container Corp.’s first-lien term loan to 3 from 2. The 3 recovery rating indicates an expectation of meaningful (50%-70%; upper half of the range) recovery for lenders in the event of a payment default.

At the same time, S&P lowered the issue-level rating on the first-lien term loan to BB- from BB in accordance with S&P’s notching criteria for a 3 recovery rating.

S&P said these revisions follow Anchor Glass’ announcement that it is upsizing its proposed incremental first-lien term loan by $110 million, increasing the aggregate amount to $545 million.

“We expect that Anchor Glass will use the proceeds from this loan to fund a dividend to its shareholders and pay transaction-related fees and expenses,” S&P said in a news release.

All of S&P’s other ratings on Anchor Glass are unchanged.

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