S&P rates MacDermid loans B+, notes CCC+

Standard & Poor's said it assigned B+ ratings with recovery ratings of 1 to MacDermid Inc.'s proposed $50 million senior secured revolving credit facility due 2013 and $510 million senior secured term loan B due 2014 and CCC+ ratings to the company's proposed $250 million senior unsecured notes due in 2014 and $215 million senior subordinated notes due 2017.

The ratings, including MacDermid's BB+ corporate credit and BB- subordinated debt ratings, remain on CreditWatch with negative implications, where they were placed on Sept. 6 following the announcement that MacDermid received a proposal letter from the investor group including chairman and chief executive officer Daniel H. Leever, Court Square Capital Partners and Western Presidio to purchase all of the company's outstanding common stock at $32.50 per share. The merger agreement was signed on Dec. 15 with a purchase price of $35.00 per share.

The investor group will use proceeds from the new bank credit facilities, the senior unsecured notes and the senior subordinated notes to finance the acquisition of MacDermid in a transaction valued at about $1.3 billion.

The agency said it expects to lower the corporate credit rating to B from BB+ following the successful completion of the acquisition and proposed financing to reflect the substantial increase in debt and subsequent deterioration of the financial profile. The total debt-to-EBITDA ratio is expected to reach 7.2x.

The ratings will continue to reflect MacDermid's satisfactory business position, S&P noted.

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