S&P to up Platform Specialty notes; rates loan BB

S&P said it affirmed its BB- issuer credit ratings on Platform Specialty Products Corp. and its subsidiary MacDermid Inc.

The outlooks remain stable.

At the same time, the agency assigned its BB issue-level rating and 2 recovery rating to Platform Specialty Products’ proposed $1.08 billion senior secured credit facility. The recovery rating indicates an expectation for substantial (70%-90%; rounded estimate: 85%) recovery in the event of a payment default.

The borrowers on the proposed facility are Platform Specialty and MacDermid.

Additionally, S&P affirmed the BB- issue-level rating on the company's existing senior secured debt. The 3 recovery rating remains, indicating meaningful recovery (50%-70%; rounded estimate: 65%).

The agency also affirmed the B+ issue-level rating on Platform's unsecured debt. The 5 recovery rating remains, indicating modest (10%-30%; rounded estimate: 10%) recovery.

Upon the close of the company's sale of its Agricultural Solutions Business to UPL Ltd. and the repayment of all of its existing debt, other than the $800 million unsecured notes due 2025, S&P said it will raise its issue-level rating on the unsecured notes to BB- and revise the recovery rating to 4.

“Our ratings on Platform Specialty Products Corp. consider the company's transformation plan and its intention to mainly use the proceeds from the sale of its Agricultural Solutions Business to pay down a meaningful portion of its outstanding debt,” S&P said in a news release.

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