S&P lowers MWI Holdings, rates loan B-

S&P said it lowered the issuer credit rating on Helix Acquisition Holdings Inc. to B- from B. The outlook is stable.

At the same time, S&P assigned a B- issue-level rating to the proposed add-on and lowered the existing issue-level ratings on the company's first-lien term loan to B- from B and the second-lien term loan to CCC from CCC+.

Helix Acquisition Holdings, through wholly owned subsidiary MWI Holdings Inc., has agreed to acquire a manufacturer of medical and aerospace metal components, partially financed with the issuance of $50 million of incremental first-lien debt.

“The downgrade reflects MWI's elevated leverage pro forma for the acquisition. Along with pressures from raw material price increases, a tight labor market, and likely continued pursuit of further debt-financed acquisitions, we expect leverage to remain high over the next 12 months,” S&P said in a news release.

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