S&P rates Mauser loans B, CCC+

Standard & Poor’s said it assigned a B long-term corporate credit rating to CD&R Millennium HoldCo 6 Sarl, an indirect holding company for Mauser Holding GmbH.

The outlook is stable.

S&P also said it assigned a B rating to CD&R Millennium’s €150 million revolving credit facility and €50 million acquisition facility, in line with its corporate credit rating.

The recovery rating on this revolver is 3.

The agency also said it assigned a B rating to the €445 million and $320 million first-lien term loans. The recovery rating on these notes is 3.

S&P also said it assigned a CCC+ rating to the $402 million second-lien term loan. The recovery rating on these notes is 6.

The ratings reflect Mauser’s fair business risk profile and highly leveraged financial risk profile, the agency said.

The financial sponsor, Clayton Dubilier & Rice, financed its €1.2 billion acquisition of Mauser by placing €975 million-equivalent first- and second-lien loans, making a €187 million pure equity contribution and issuing €55 million in preferred equity certificates.

The group is estimated to have an adjusted debt-to-EBITDA ratio of about 6.9x for the financial year ending Dec. 31, 2014, S&P said.

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