S&P rates Atotech loans B+, notes CCC+

S&P said it assigned its preliminary B long-term corporate credit rating to Alpha 2 BV (Netherlands), the holding company of Atotech BV, manufacturer of specialty chemicals and equipment for high technology electroplating applications. The outlook is stable.

At the same time, S&P assigned a preliminary B+ issue rating to the proposed $1.4 billion term loan B and $250 million revolving credit facility.

S&P also assigned a preliminary CCC+ issue rating to the proposed $425 million senior unsecured notes to be issued by financing entities Alpha 3 BV and Alpha US Bidco, Inc.

The recovery rating on the term loan and the revolver is 2, indicating an expectation of recovery prospects for creditors in the higher half of the 70%-90% range in the event of payment default. The recovery rating on the notes is 6, the agency said.

The ratings follow the announcement that Atotech is being acquired from Total SA by funds from private equity firm Carlyle. The acquisition will be funded by the term loan B and senior unsecured notes issued by Alpha 3 BV and Alpha US Bidco, Inc., as well as by $1.2 billion common and preferred equity to be provided by the sponsor.

© 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.