S&P rates Titan loan B, notes CCC+

S&P said it affirmed its B long-term corporate credit rating on Husky IMS International Ltd. and assigned its B corporate credit rating to Titan Acquisition Ltd.

The outlook is stable.

The agency also assigned its B issue-level rating to Titan's proposed $2 billion term loan facility due 2025. The recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate of 55%) recovery in the event of a default.

At the same time, the agency assigned its CCC+ issue-level rating and 6 recovery rating to the proposed $750 million senior notes due 2026. The recovery rating indicates an expectation for negligible (0%-10%; rounded estimate of 0%) recovery.

Husky plans to refinance its existing capital structure with proceeds from the credit facilities and notes proposed by Titan. Titan will merge with Husky after the proposed refinancing transaction closes.

S&P said it expects that about $1.5 billion of proceeds from the debt refinancing along with about $1.2 billion of equity provided from Platinum Equity Capital Partners will be used primarily to purchase the equity interest in Husky and pay related fees and expenses.

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