S&P rates CHG PPC loan B

S&P said it affirmed all ratings, including the B issuer credit rating on CHG PPC Intermediate II LLC and subsidiary CHG PPC Parent LLC.

At the same time, S&P said it assigned a B issue-level rating and 3 recovery rating to the company's proposed €175 million first-lien term loan B due 2025.

U.S.-based CHG PPC Parent LLC is issuing a €175 million first-lien term loan B to fund its acquisition of Mid South Baking Co. and repay revolver borrowings in a deal expected to close in April.

“The stable outlook reflects our expectation for leverage to be managed near 6x over the next 12-18 months given our expectation for modest debt repayment from positive free cash flow generation and EBITDA growth to largely offset continued tuck-in debt-financed acquisitions,” S&P said in a news release.

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