S&P rates Shape Technologies loans B

S&P said it assigned its B issue-level rating and 4 recovery rating to Shape Technologies Group Inc.'s proposed senior secured first-lien facilities, which comprise a $300 million senior secured first-lien term loan due 2025 and a $15 million revolving credit facility due 2023. The 4 recovery rating on this debt indicates an expectation for average (30%-50%; rounded estimate: 35%) recovery in the event of a payment default.

The company will use the proceeds from these proposed senior secured first-lien facilities, along with an unrated $60 million asset-based lending revolving credit facility due 2023, to refinance or redeem its existing $50 million ABL facility due 2019 (unrated) and $225 million 7 5/8% secured notes due 2020.

“Our B corporate credit rating and stable rating outlook on Shape Technologies Group Inc. are unaffected by this transaction,” S&P said in a news release.

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