S&P rates PriSo Acquisition loan B+, notes CCC+

Standard & Poor’s said it assigned its B corporate credit rating to PriSo Acquisition Corp. (PrimeSource Building Products Inc.). The outlook is stable.

At the same time, S&P assigned its B+ issue-level rating to the company’s proposed $325 million first-lien senior secured term loan due 2022 and its CCC+ issue-level rating to the company’s proposed $230 million senior unsecured notes due 2023.

The recovery rating on the first-lien senior secured term loan is 2, indicating an expectation of substantial (70% to 90%; upper end of the range) recovery for lenders in the event of a payment default. The recovery rating on the senior unsecured notes is 6, indicating an expectation of negligible (0% to 10%) recovery for lenders in the event of a payment default.

“The stable outlook reflects our view that PrimeSource will maintain credit measures consistent with a highly leveraged financial risk profile, with debt leverage remaining in excess of 5x despite improved margins and increased demand in fiscal years 2016 and 2017,” said S&P credit analyst Pablo Garces in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.