S&P applies B to WKI loan

S&P said it affirmed its ratings, including the B corporate credit rating on WKI Holding Co. Inc. and assigned a B corporate credit rating to the parent company, World Kitchen Group Inc.

The outlook on both ratings is stable.

At the same time, the agency assigned a B issue-level rating to WKI's proposed $275 million senior secured term loan B maturing in 2023 and a 3 recovery rating, indicating an expectation for meaningful recovery (50%-70%, upper half of the range) in the event of a payment default.

Proceeds from the debt offering, $173 million of cash from the SPAC, $50 million of common equity from GP Investments, $65 million of rollover equity, and cash will be used to fund the acquisition. S&P estimates that the company will have $400 million of adjusted debt at close.

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