S&P cuts Glatfelter, rates notes BB

S&P said it trimmed Glatfelter to BB from BB+ and gave a BB issue and 4 recovery ratings to its planned eight-year notes. The agency also removed the company’s rating from CreditWatch with negative implications, where it was placed on July 27.

Glatfelter plans to acquire Jacob Holm Group by using the proceeds from the notes, which will also be used to repay borrowings under the credit facility.

“We expect the transaction will substantially increase Glatfelter's debt and subsequently its leverage above levels commensurate with the rating,” S&P said in a press release.

The outlook is stable.

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