S&P: Element Materials loan B

Standard & Poor’s said it assigned a preliminary B long-term corporate credit rating to Element Materials Technology Ltd., a holding company created to acquire Element Materials Technology Group Holding CC2 Ltd.

The outlook is stable.

The agency also said it assigned a preliminary B rating to the proposed $30 million revolving credit facility, $70 million capital expenditure facility, $225 million term loan B1 and $210 million equivalent term loan B2 to be borrowed by Element subsidiaries, EMT 2 Holdings Ltd. and EMT Finance Inc.

The recovery rating on these facilities is 4, indicating 30% to 50% expected default recovery.

The preliminary ratings were assigned as a result of the company’s refinancing via a fully underwritten $435 million senior secured term loan B, S&P said.

The ratings consider Element’s leading position in the niche markets in which it operates, the agency said, along with the complexity of the services that the company provides and its highly educated workforce.

The ratings also acknowledge Element’s small absolute scale in its industry, limited end product and limited end-market diversity, S&P said.

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