S&P assigns Sterigenics loan B+

Standard & Poor's said it affirmed its existing ratings on Sterigenics International Inc. (B+/stable), a wholly owned subsidiary of Sterigenics Holdings Inc.

At the same time, S&P said it assigned its loan and recovery ratings to Sterigenics' senior secured credit facilities, consisting of a $290 million first-lien term loan B due in 2013 and a $30 million first-lien revolving credit facility due in 2011.

The facilities are rated B+, at the same level as the corporate credit rating, with a recovery rating of 2, the agency said, noting that proceeds of the financing will be used to pay down outstanding bank loans and finance a $75 million distribution to financial sponsors PPM Capital Ltd. and PPM America Capital Partners LLC, which includes the repayment of holding company loan stock and paid-in-kind accruals.

S&P added that the B+ rating reflects Sterigenics' single business focus in a competitive industry, high debt levels and capital expenditures that are large relative to its cash flow from operations.

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