S&P rates Schumacher loans B, CCC+

Standard & Poor’s said it assigned its B corporate credit rating to the Schumacher Group of Delaware Inc. The outlook is stable.

At the same time, S&P assigned a B issue-level rating and 3 recovery rating to the proposed first-lien credit facilities being issued by Onex TSG Intermediate Corp., consisting of a $75 million five-year revolving credit facility (expected to be undrawn at close) and a $400 million seven-year first-lien term loan, reflecting an expectation for meaningful recovery in the event of a payment default (at the low end of the 50% to 70% range).

S&P also assigned a CCC+ issue-level rating and 6 recovery rating to the proposed $135 million, eight-year second-lien term loan being issued by Onex TSG Intermediate Corp., reflecting an expectation for negligible (0% to 10%) recovery in the event of a payment default.

“Our stable rating outlook reflects our expectation that the company will generate at least low-single-digit organic growth, resulting in at least $10 million in annual free operating cash flow,” said S&P credit analyst Shannan Murphy in a news release.

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