S&P affirms Multi Packaging

Standard & Poor's said it affirmed the B corporate credit rating on Multi Packaging Solutions Inc. and revised the ratings on John Henry Holdings Inc.'s senior secured credit facilities following the borrower's completed recapitalization. The agency raised the issue-level ratings on the final $212.5 million credit facilities to B+ from B and revised the recovery ratings to 2 from 3, indicating an expectation of 70% to 90% recovery in a default scenario. The credit facilities include a $30 million revolving credit facility and a $182.5 million term loan and are guaranteed by Multi Packaging.

The outlook is stable.

The size of the credit facilities was reduced and terms and conditions changed, which supports the improved recovery ratings, S&P said.

The affirmation reflects an expectation that Multi Packaging will continue to generate sufficient cash flows to fund growth objectives and maintain credit measures appropriate for the current ratings, despite increased cash outflows from higher amortization and interest requirements and a minimal cash balance after the expected fiscal year-end dividend payment, the agency said.

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