S&P rates Mirion loans B, B-

Standard & Poor’s said it affirmed the B corporate credit rating on Mirion Technologies Inc.

The agency also said it assigned a B rating to Mirion Technologies (Finance) LLC and Mirion Technologies’ proposed new $315 million first-lien credit facility with a 3 recovery rating, which indicates 50% to 70% expected default range.

The proposed facility will consist of a $35 million revolving credit facility and a $280 million term loan.

S&P also said it assigned a B- rating to the company’s proposed $65 million second-lien term loan with a 5 recovery rating, which indicates 10% to 30% expected default recovery.

The outlook is stable.

The proceeds from the new facility, along with equity contributions from the new sponsor, will be used to redeem all outstanding debt from its existing capital structure and fund the acquisition, the agency said.

Mirion operates in the radiation detection and monitoring industry niche and is exposed to fragmented and competitive end markets, S&P said. The company has limited product and end-market diversity and concentrated customer base, the agency said.

Partly offsetting these factors are the company’s leading positions as the No. 1 player in many of its markets, good geographic diversity and meaningful recurring revenues, S&P added.

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