S&P Tekni-Plex parent’s notes CCC+, loans B

S&P said it revised its outlook on Tekni-Plex to negative from stable and affirmed its B corporate credit rating on the company.

At the same time, S&P assigned a B corporate credit rating and negative outlook to Tekni-Plex's parent ASP TPI Holdings Inc.

In addition, S&P assigned a B issue-level rating and 3 recovery rating to ASP TPI's proposed senior secured credit facilities, including a $413 million first-lien term loan and €249 million first-lien term loan. The 3 recovery rating indicates an expectation for meaningful (50%-70%, rounded estimate 50%) recovery in the event of default.

S&P also assigned a CCC+ issue-level rating and 6 recovery rating to ASP TPI's proposed $260 million senior unsecured notes. The 6 recovery rating indicates an expectation for negligible (0%-10%, rounded estimate 5%) recovery in the event of default.

S&P said it will withdraw the ratings on Tekni-Plex's existing debt at the close of the transaction.

The affirmation and negative outlook reflects Tekni-Plex's elevated debt leverage profile following the company's sale to financial sponsor Genstar, S&P said in a news release.

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