S&P rate Multi-Color notes B+, revolver BB+

Standard & Poor’s said it assigned a BB- corporate credit rating to Multi-Color Corp.

The agency also said it assigned a B+ rating and 5 recovery rating to the company’s proposed $250 million senior unsecured notes due 2022.

The 5 recovery rating indicates 10% to 30% expected default recovery.

S&P also said it assigned a BB+ rating and 1 recovery rating to the company’s proposed $500 million senior secured revolving credit facilities.

The 1 recovery rating indicates 90% to 100% expected default recovery.

The outlook is stable.

The company will use the notes and about $212 million drawn under the new revolver to pay about $462 million in senior secured facilities and fees and expenses, S&P said.

The ratings reflect the company’s fair business risk profile and aggressive financial risk profile, the agency said.

The ratings also consider the company’s leading market position in the labels industry and relatively stable profitability, S&P said.

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