S&P ups Multi Packaging, rates loan BB-

S&P said it raised its corporate credit rating on Multi Packaging Solutions Ltd. by one notch to B+. The outlook is stable.

S&P also raised the ratings on the debt held at the company's subsidiaries (Multi Packaging Solutions Inc., Chase Bidco Ltd., and MPS Mustang Corp.) to BB- from B+. The recovery rating remains 2. S&P noted that the 2 recovery rating on the secured debt, indicating an expectation of substantial (70%-90%) recovery in the event of a payment default, has moved to the lower end of the range from the higher end of the range because of the increased proportion of secured debt relative to unsecured debt pro forma for the transaction and subsequent notes refinancing.

S&P also assigned a 2 recovery rating and BB- issue rating to the company's proposed $220 million secured term loan. The borrowers are Multi Packaging Solutions Inc. and Multi Packaging Solutions Ltd.

The 2 recovery rating on the secured term loan indicates an expectation of substantial (70%-90%; lower end of the range) recovery in the event of a payment default.

S&P said the upgrade on the company reflects the company's debt reduction and improved credit measures since its IPO in October 2015, and the likelihood of the company's credit statistics remaining appropriate for the modestly higher rating despite the potential for tempered organic growth.

© 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.