S&P rates Mirion loans B

S&P said it affirmed the B issuer credit rating on Mirion Technologies Inc.

The agency also said it assigned a B rating and 3 recovery rating to the company's proposed revolving credit facility and first-lien term loans.

The outlook is stable.

S&P said it will withdraw the rating on the company's existing debt at the close of the transaction.

Mirion announced plans to refinance its debt with new senior secured credit facilities comprising a $90 million revolving credit facility and $450 million and €125 million first-lien term loans, the agency explained.

The stable outlook reflects a belief that the company's expected revenue growth and operational improvements will allow it to maintain above-average EBITDA margins and an adjusted debt-to-EBITDA margins of less than 6.5x over the next 12- to 18-months, S&P said.

The ratings are constrained by the company's ownership by private equity sponsor Charterhouse Capital Partners LP, the agency said, and a belief that financial sponsor owners frequently extract cash and increase leverage of owned companies through acquisitions and dividends over time.

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