S&P gives GC EOS Buyer notes CCC+

S&P said it assigned its CCC+ issue-level rating and 4 recovery rating to GC EOS Buyer Inc.’s proposed $240 million of senior secured notes. The 4 recovery rating indicates S&P’s expectation for average (30%-50%; rounded estimate: 30%) recovery in the event of a default.

The ratings on the company's first- and second-lien term loans remain unchanged, S&P said. “Our CCC+ issuer credit rating and negative outlook on GC EOS Buyer are unaffected because its leverage will remain above 10x after the transaction. This issuance should initially improve the company's liquidity because it will use the proceeds from the notes to pay down its outstanding revolver borrowings and pay off the secured bridge loan it issued to fund the purchase of M&R Precision Parts,” S&P said in a press release.

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